Internet-based targeted advertising can either harm or benefit consumers and society.
The article explores how online targeted advertising can impact consumers and society. It introduces the concepts of accuracy and recognition in targeting quality. The study shows that targeted ads can either increase or decrease consumer benefits and social welfare, depending on how accurately and widely they reach the target audience. Recognition of the ads can raise prices, while accuracy can affect how intense the ads are and the final price. This means that companies can use accuracy and recognition to strategically target their ads to specific market segments.