Question

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.
short no points and at a 6th grade level

Answer 1

Companies like Facebook and Google let people use their services for free, but they watch what you do—what you search, what you like, where you go—and use that information to show ads that fit your interests. Advertisers pay the companies to show those targeted ads because they are more likely to reach people who will buy their products. The hidden costs are that you give up privacy and control over your data, you see more and more ads, and your choices and feelings can be nudged by the content you are shown. There is also a risk of data being leaked or used in ways you did not expect, and the system can make it harder to see new ideas because it keeps showing you more of what you already like.