Individual Incentive Based Reward Policy for an Ad Exchange to Mitigate the Threat of Ad Blocking

Abstract

This article investigates the fairness of the existing business model of advertisement blocking and ad exchange companies by using exchange frameworks and equity theory. It then provides an individual-centric approach for an ad exchange, which aims to provide a fair compensation to individuals in exchange for their information and effort in the targeting and viewing/filtering of online advertisements. In this article, it is shown that by providing a higher value proposition to individuals in an online advertisement ecosystem, the ad exchange can not only increase individuals' equity in the system, but it can also mitigate the threat of ad blocking for publisher websites and advertisers. An efficient algorithm that estimates the monetary impact of the proposed approach and determines a fair monetary incentive—compensation—for individuals' personal information and actions—engagement—is presented in this article.