The Internet is dominated by websites that offer free content and generate their revenue by advertisements. Switching to targeted advertising can create greater revenues, because this increases the relevance of an advertisement. In that way the effectiveness of an advertisement can be increased leading to extra revenue. Targeted online advertising can be described as an advertisement that is based upon information of the receiver, like demographics, browsing behavior and purchase behavior. Companies spend around 2.6 billon dollar on online targeted advertising. But a lot of people show resistance against advertising that is based upon behavioral data, because of, for example, privacy concerns. Fifty percent of the people that are surfing online even believe that tracking user’ online behavior should be illegal (Alreck and Settle, 2007).
Continue reading Increasing the willingness to share personal information for online targeted advertisement