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The enormous financial success of online advertising platforms is partiallydue to the precise targeting features they offer. Although researchers andjournalists have found many ways that advertisers can target---orexclude---particular groups of users seeing their ads, comparatively littleattention has been paid to the implications of the platform's ad deliveryprocess, comprised of the platform's choices about which users see which ads.  It has been hypothesized that this process can "skew" ad delivery in waysthat the advertisers do not intend, making some users less likely than othersto see particular ads based on their demographic characteristics. In thispaper, we demonstrate that such skewed delivery occurs on Facebook, due tomarket and financial optimization effects as well as the platform's ownpredictions about the "relevance" of ads to different groups of users. We findthat both the advertiser's budget and the content of the ad each significantlycontribute to the skew of Facebook's ad delivery. Critically, we observesignificant skew in delivery along gender and racial lines for "real" ads foremployment and housing opportunities despite neutral targeting parameters.  Our results demonstrate previously unknown mechanisms that can lead topotentially discriminatory ad delivery, even when advertisers set theirtargeting parameters to be highly inclusive. This underscores the need forpolicymakers and platforms to carefully consider the role of the ad deliveryoptimization run by ad platforms themselves---and not just the targetingchoices of advertisers---in preventing discrimination in digital advertising.

Discrimination through optimization: How Facebook's ad delivery can lead to skewed outcomes