Research Recap

Balancing the Cost and Benefits of Experiments in Digital Advertising

Key Takeway

Randomized controlled trials (RCTs) allow causal inference about digital ad effectiveness but incur both direct and opportunity costs by excluding control groups. Online platforms vary costs for ads and for support of experimentation to attract bidders. This game-theoretic model can help both parties determine the costs and benefits of experimentation.

By using MSI.org you agree to our use of cookies as identifiers and for other features of the site as described in our Privacy Policy.