Off with their headers: Mechanism choices in online display advertising

Francesco Balocco; Yixin Lu; Ting Li

Off with their headers: Mechanism choices in online display advertising

Francesco Balocco
, Yixin Lu
, Ting Li

Research output: Chapter in Book / Report / Conference proceeding › Conference contribution › Academic › peer-review

Abstract

The online display advertising market is undergoing major transformations. In this paper, we study the drivers for publishers' transition from the waterfall model to header bidding and the ad exchanges' shift from the second-price to the first-price auction through analytical modeling. We show that adopting header bidding is profitable only when advertisers' valuations are asymmetric. We also show that switching to the first-price sealed bid mechanism is a dominant strategy for Ad Exchanges when publishers adopt header bidding. Our paper contributes to the literature by reconciling different views around the underlying drivers behind the on-going mechanism switches and shedding new lights on the complex interplay of informational and strategic factors in the online display advertising market.

Original language	English
Title of host publication	International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive
Subtitle of host publication	Blending the Local and the Global
Publisher	Association for Information Systems
ISBN (Electronic)	9781733632553
Publication status	Published - 2021
Externally published	Yes
Event	2020 International Conference on Information Systems - Making Digital Inclusive: Blending the Local and the Global, ICIS 2020 - Virtual, Online, India Duration: 13 Dec 2020 → 16 Dec 2020

Publication series

Name	International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global

Conference

Conference	2020 International Conference on Information Systems - Making Digital Inclusive: Blending the Local and the Global, ICIS 2020
Country/Territory	India
City	Virtual, Online
Period	13/12/20 → 16/12/20

Bibliographical note

Publisher Copyright:
© ICIS 2020. All rights reserved.

Keywords

Digital advertising
Header bidding
Programmatic media buying
Trust

Persistent URL (handle)

Persistent link

Cite this

Balocco, F., Lu, Y., & Li, T. (2021). Off with their headers: Mechanism choices in online display advertising. In International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global (International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global). Association for Information Systems.

Balocco, Francesco ; Lu, Yixin ; Li, Ting. / Off with their headers : Mechanism choices in online display advertising. International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global. Association for Information Systems, 2021. (International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global).

@inproceedings{0119dd3547334d798c5c940a989e037a,

title = "Off with their headers: Mechanism choices in online display advertising",

abstract = "The online display advertising market is undergoing major transformations. In this paper, we study the drivers for publishers' transition from the waterfall model to header bidding and the ad exchanges' shift from the second-price to the first-price auction through analytical modeling. We show that adopting header bidding is profitable only when advertisers' valuations are asymmetric. We also show that switching to the first-price sealed bid mechanism is a dominant strategy for Ad Exchanges when publishers adopt header bidding. Our paper contributes to the literature by reconciling different views around the underlying drivers behind the on-going mechanism switches and shedding new lights on the complex interplay of informational and strategic factors in the online display advertising market.",

keywords = "Digital advertising, Header bidding, Programmatic media buying, Trust",

author = "Francesco Balocco and Yixin Lu and Ting Li",

note = "Publisher Copyright: {\textcopyright} ICIS 2020. All rights reserved.; 2020 International Conference on Information Systems - Making Digital Inclusive: Blending the Local and the Global, ICIS 2020 ; Conference date: 13-12-2020 Through 16-12-2020",

year = "2021",

language = "English",

series = "International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global",

publisher = "Association for Information Systems",

booktitle = "International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive",

address = "United States",

}

Balocco, F, Lu, Y & Li, T 2021, Off with their headers: Mechanism choices in online display advertising. in International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global. International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global, Association for Information Systems, 2020 International Conference on Information Systems - Making Digital Inclusive: Blending the Local and the Global, ICIS 2020, Virtual, Online, India, 13/12/20.

Off with their headers: Mechanism choices in online display advertising. / Balocco, Francesco; Lu, Yixin; Li, Ting.
International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global. Association for Information Systems, 2021. (International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global).

Research output: Chapter in Book / Report / Conference proceeding › Conference contribution › Academic › peer-review

TY - GEN

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T2 - 2020 International Conference on Information Systems - Making Digital Inclusive: Blending the Local and the Global, ICIS 2020

AU - Balocco, Francesco

AU - Lu, Yixin

AU - Li, Ting

PY - 2021

Y1 - 2021

N2 - The online display advertising market is undergoing major transformations. In this paper, we study the drivers for publishers' transition from the waterfall model to header bidding and the ad exchanges' shift from the second-price to the first-price auction through analytical modeling. We show that adopting header bidding is profitable only when advertisers' valuations are asymmetric. We also show that switching to the first-price sealed bid mechanism is a dominant strategy for Ad Exchanges when publishers adopt header bidding. Our paper contributes to the literature by reconciling different views around the underlying drivers behind the on-going mechanism switches and shedding new lights on the complex interplay of informational and strategic factors in the online display advertising market.

AB - The online display advertising market is undergoing major transformations. In this paper, we study the drivers for publishers' transition from the waterfall model to header bidding and the ad exchanges' shift from the second-price to the first-price auction through analytical modeling. We show that adopting header bidding is profitable only when advertisers' valuations are asymmetric. We also show that switching to the first-price sealed bid mechanism is a dominant strategy for Ad Exchanges when publishers adopt header bidding. Our paper contributes to the literature by reconciling different views around the underlying drivers behind the on-going mechanism switches and shedding new lights on the complex interplay of informational and strategic factors in the online display advertising market.

KW - Digital advertising

KW - Header bidding

KW - Programmatic media buying

KW - Trust

UR - https://www.scopus.com/pages/publications/85103460477

UR - https://www.scopus.com/pages/publications/85103460477#tab=citedBy

M3 - Conference contribution

AN - SCOPUS:85103460477

T3 - International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global

BT - International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive

PB - Association for Information Systems

Y2 - 13 December 2020 through 16 December 2020

ER -

Balocco F, Lu Y, Li T. Off with their headers: Mechanism choices in online display advertising. In International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global. Association for Information Systems. 2021. (International Conference on Information Systems, ICIS 2020 - Making Digital Inclusive: Blending the Local and the Global).

Off with their headers: Mechanism choices in online display advertising

Abstract

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Conference

Bibliographical note

Keywords

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