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Jun
24
CORE Louvain Economics of Digitization online Seminar - Gabriele Rovigatti, Bank of Italy

Gabriele Rovigatti

Bank of Italy

will give a presentation on:

From Mad Men to Maths Men: Concentration and Buyer Power in Online Advertising

 

Abstract

This paper analyzes the impact of intermediary concentration on the allocation of revenues in online platforms. We study sponsored search documenting how advertisers increasingly bid through a handful of specialized intermediaries. This enhances automated bidding and data pooling, but lessens competition whenever the intermediary represents competing advertisers. Using data on nearly 40 million Google keyword-auctions, we first apply machine learning algorithms to cluster keywords into thematic groups serving as relevant markets. Using an instrumental variable strategy, we estimate a decline in the platform’s revenues of approximately 11 percent due to the average rise in concentration associated with intermediary M&A activity.

Date
24 June
Time
12:50 - 13:50
Online
This is an online event at Zoom https://us02web.zoom.us/j/85639207880 Go to event website