Causal impact of digital display ads on advertiser performance
2022
Brands are searching for innovative ways to reach customers online. Sponsored Display (SD) by Amazon Ads is a new way to do so, and allows customer reaching strategy by category, product and audience. However, advertisers are uncertain how much SD improves their performance over different time horizons. This paper studies more than 40,000 brands with two different methods: a diffusion-regression state-space time-series analysis that predicts response counterfactuals during a 20-weeks period post SD adoption of audience reaching strategy, and a non-parametric Gaussian Process algorithm that generates counterfactuals using Bayesian multitask learning to draw causal inferences in shorter time frames (i.e., one-month post SD adoption of category and product customer reaching strategy). The performance variables include impressions, page views, sales, new-to-brand consumers and Return on Advertising Spend. The results are consistent and quantify how much adding SD to the ad mix increases performance.
Research areas