Marketing Models for Internet Advertising

Abstract

This chapter reviews recent advances in the application of marketing models to improve decision-making in internet advertising. It focuses on models developed for use in display advertising and sponsored search advertising. Together, these media account for the bulk of online advertising spending and most of the recent modeling advances in internet advertising. The chapter describes the challenges that confront modelers in these areas, including data limitations and selection effects due to targeting, and details how recent advances in model formulation and model-enhanced experiments are able to address them. The chapter closes with a look at recent modeling work that incorporates the effects of both online display and sponsored search advertising.