Alessandro Acquisti - Carnegie Mellon
Behavioral Advertising and Consumer Welfare
Oct 23, 2024
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Abstract
Online behavioral advertising has raised privacy concerns due to its dependence on extensive tracking of individuals' behaviors and its potential to influence them. Those concerns have been often juxtaposed with the economic value consumers are expected to gain from receiving behaviorally targeted ads. Those purported economic benefits, however, have been more frequently hypothesized than empirically demonstrated. We present the results of two online experiments designed to assess some of the consumer welfare implications of behaviorally targeted advertising using a counterfactual approach. Study 1 finds that products in ads targeted to a sample of online participants were more relevant to them than randomly picked products but were also more likely to be associated with lower quality vendors and higher product prices compared to competing alternatives found among search results. Study 2 replicates the results of Study 1. Additionally, Study 2 finds the higher product relevance of products in targeted ads relative to randomly picked products to be driven by participants having previously searched for the advertised products. The results help evaluate claims about the direct economic benefits consumers may gain from behavioral advertising.
About the Speaker
Alessandro has been the recipient of the PET Award for Outstanding Research in Privacy Enhancing Technologies, the IBM Best Academic Privacy Faculty Award, the IEEE Cybersecurity Award for Innovation, the Heinz College School of Information's Teaching Excellence Award, and numerous Best Paper awards. His studies have been published in journals across multiple disciplines, including Science, Proceedings of the National Academy of Science, Journal of Economic Literature, Management Science, Marketing Science, and Journal of Consumer Research. His research has been featured in global media outlets including the Economist, the New York Times, the Wall Street Journal, NPR, CNN, and 60 Minutes. His TED talks on privacy and human behaviour have been viewed over 1.5 million times.
Alessandro is the director of the Privacy Economics Experiments (PeeX) Lab, the Chair of CMU Institutional Review Board (IRB), and the former faculty director of the CMU Digital Transformation and Innovation Center. He is an Andrew Carnegie Fellow (inaugural class), and has been a member of the Board of Regents of the National Library of Medicine and a member of the National Academies' Committee on public response to alerts and warnings using social media and associated privacy considerations. He has testified before the U.S. Senate and House committees and has consulted on issues related to privacy policy and consumer behavior with numerous agencies and organizations, including the White House's Office of Science and Technology Policy (OSTP), the US Federal Trade Commission (FTC), and the European Commission.
He has received a PhD from UC Berkeley and Master degrees from UC Berkeley, the London School of Economics, and Trinity College Dublin. He has held visiting positions at the Universities of Rome, Paris, and Freiburg (visiting professor); Harvard University (visiting scholar); University of Chicago (visiting fellow); Microsoft Research (visiting researcher); and Google (visiting scientist).
His research interests include privacy, artificial intelligence, and Nutella. In a previous life, he has been a soundtrack composer and a motorcycle racer (USGPRU).
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