Digital advertising revenues grew from nothing to $108 billion in 25 years, eclipsing all traditional advertising media combined. Yet there are indicators that unregulated markets for digital advertising have experienced some problems. The E.U. fined Google more than $9 billion in three antitrust cases and the U.S. Federal Trade Commission fined Facebook $5 billion after it broke a 2012 Consent Order. Prominent politicians have criticized the industry and proposed structural reforms. New privacy laws mandate transparency and consent requirements for data-driven advertising and user identification practices. This Journal of Marketing article seeks to help marketers and policymakers understand four pervasive issues in digital advertising markets and how they impact market efficiency. The authors discuss problems associated with advertising effect measurement, organizational inefficiencies in advertising, ad blocking, and ad fraud and solutions for marketers.
Full Journal of Marketing article: https://doi.org/10.1177%2F0022242920913236
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