Online Auctions and Digital Marketing Agencies

Download or read book Online Auctions and Digital Marketing Agencies written by Francesco Decarolis and published by . This book was released on 2017 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: We present an empirical investigation of the role of marketing agencies in Google's online ad auctions. By combining data on advertisers' affiliation to marketing agencies with data on bidding in ad auctions, we analyze how changes in the concentration of clients in the same industry under the same ad network are associated with changes in keyword bidding in terms of entry, exit, and pricing strategies. Moreover, by exploiting the case of a recent merger between agencies, we estimate through a difference-in-differences strategy that an increase in concentration leads to reduction in the average cost-per-click of the keywords affected by the merger.