The Cost of Digital Advertisement: Comparing User and Advertiser Views

Panagiotis Papadopoulos, Nicolas Kourtellis, Evangelos P. Markatos

Abstract: Digital advertisements are delivered in the form of static images, animations or videos, with the goal to promote a product, a service or an idea to desktop or mobile users. Thus, the advertiser pays a monetary cost to buy ad-space in a content provider»s medium (e.g., website) to place their advertisement in the consumer»s display. However, is it only the advertiser who pays for the ad delivery? Unlike traditional advertisements in mediums such as newspapers, TV or radio, in the digital world, the end-users are also paying a cost for the advertisement delivery. Whilst the cost on the advertiser»s side is clearly monetary, on the end-user, it includes both quantifiable costs, such as network requests and transferred bytes, and qualitative costs such as privacy loss to the ad ecosystem. In this study, we aim to increase user awareness regarding the hidden costs of digital advertisement in mobile devices, and compare the user and advertiser views. Specifically, we built OpenDAMP, a transparency tool that passively analyzes users» web traffic and estimates the costs in both sides. We use a year-long dataset of 1270 real mobile users and by juxtaposing the costs of both sides, we identify a clear imbalance: the advertisers pay several times less to deliver ads, than the cost paid by the users to download them. In addition, the majority of users experience a significant privacy loss, through the personalized ad delivery mechanics.