Handbook of Marketing Analytics
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Handbook of Marketing Analytics

Methods and Applications in Marketing Management, Public Policy, and Litigation Support

Edited by Natalie Mizik and Dominique M. Hanssens

Marketing Science contributes significantly to the development and validation of analytical tools with a wide range of applications in business, public policy and litigation support. The Handbook of Marketing Analytics showcases the analytical methods used in marketing and their high-impact real-life applications. Fourteen chapters provide an overview of specific marketing analytic methods in some technical detail and 22 case studies present thorough examples of the use of each method in marketing management, public policy, and litigation support. All contributing authors are recognized authorities in their area of specialty.
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Chapter 20: User profiling in display advertising

Michael Trusov and Liye Ma

Abstract

Constructing behavioral profiles from consumer online browsing activities is challenging: first, individual consumer-level records are massive and call for scalable high performance processing algorithms; second, advertising networks only observe consumer’s browsing activities on the sites participating in the network, potentially missing site categories not covered by the network. The latter issue can lead to a biased view of the consumer’s profile and to suboptimal advertising targeting. We present a method that augments individual-level ad network data with anonymized third-party data to improve consumer profile recovery and correct for potential biases. The approach is scalable and easily parallelized, improving almost linearly in the number of CPUs. Using economic simulation, we illustrate the potential gains the proposed model may offer to a firm when used in individual-level targeting of display ads.

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