An Experimental Infrastructure to Investigate the Impact of Online Tracking, Targeting, and Advertising on Consumer Behavior and Consumer Welfare

Abstract

We present the design of a field experiment on the impact of tracking, targeting, ad-blocking, and anti-tracking technologies on consumers’ behavior and economic outcomes. The online data industry has often heralded the benefits of online tracking and targeting, particularly in the context of online advertising. Its claims are juxtaposed by the privacy concerns associated with the vast number of ad-tech companies tracking and analyzing consumers’ online behavior – often without consumers’ awareness. We use a field experiment to analyze the impact of online tracking and targeting as well as ad-blocking and anti-tracking technologies, focusing on consumers’ online behaviors (such as browsing and shopping), and their ultimate purchasing outcomes (as measured by amounts of money spent online, product prices paid, time spent on product searching, and purchase satisfaction). In this draft, we describe the rationale and motivations behind the study; the experimental design and the instrumentation infrastructure developed for the experiments; and the plans for data collection.
See below for working paper, and video of presentation at the Economics of Digital Services EODS Economics of Digital Services Inaugural Research Symposium.

Publication
NET Institute Working Paper No. 24-10.
Date