The use of targeted marketing has allowed companies like Facebook and Google to make money without having to charge the people to use the platform. How does this work? Are there hidden costs of this business model? Explain in short sentences.

Answer 1

Targeted marketing works by collecting data on users' preferences, interests, and behaviors to deliver personalized advertisements.

Advertisers pay Facebook and Google to target specific demographics, interests, and behaviors that align with their products or services.

Users may receive ads that are more relevant to them, increasing the chances of engagement and conversion for advertisers.

However, the collection and use of personal data for targeted marketing raise privacy concerns and ethical considerations.

Some users may feel uncomfortable knowing that their data is being used for targeted advertising without their explicit consent.