M Business 5th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell

Exercise 1

It is no secret that online advertisers are trying to track consumer Internet activity and use the information to target ads toward each person's interests and preferences. These efforts used to be largely limited to individual websites tracking their own visitors. Now, however, technology enables the tracking of Internet users across sites. For example, every site with Facebook's ubiquitous "Like" button-as well as every smartphone with the Facebook app installed-sends Facebook information, which it then uses to target ads to its users.
Advertisers argue that this method, known as targeted or behavioral advertising, is a win- win for both businesses and consumers. When ads are targeted to fit each user's behavior, users are more likely to see offerings in which they have an interest, improving their online experience. Targeted ads are also more efficient for businesses, meaning companies can spend less on advertising-and, presumably, pass on the cost savings to customers. Finally, as most of the currently free-to-use websites on the Internet survive on advertising revenue, online advertisers warn that restricting or limiting advertising could lead to a much less open and free Internet.
Critics, on the other hand, point out the serious privacy concerns raised by tracking people's every online move, often without their knowledge or consent. Furthermore, this information is not necessarily secure-as evidenced by the continuing reports of large companies suffering data breaches-and can be used by criminals to commit fraud, identity theft, and other crimes. Privacy advocates want the behavioral advertising industry to be strictly regulated. In the meantime, they are encouraging consumers to learn about how to control and restrict the collection and use of their information. 81
Discuss some of the benefits to the consumer that may occur with behavioral advertising.