Ethical Considerations and Societal Impact of Personalized Advertising Algorithms
DOI:
https://doi.org/10.47611/jsrhs.v12i4.5910Keywords:
Personalized Advertisements, Data Mining, Ethical ConsiderationsAbstract
Data mining and algorithmic decisions making have reshaped marketing by allowing businesses to present products best applicable to the user in the shape of personalized advertisements. Using algorithms with pre-coded biases, companies can exploit data in order to increase revenue. Companies will present inferior products or services to certain demographics with a low-household income or higher quality products to high income neighborhoods. This is problematic as it not only violates ethics but prolongs discrimination in marginalized communities. Indeed, businesses over the years have targeted specific audiences based on data gathered to recommend products or even sway a presidential election. However, in recent years, there has been a rise in government regulations and various regulatory frameworks. The European Union has forced companies to be more transparent about their data mining technologies. In addition, there are various ways companies can increase their own integrity by enforcing regulation within the company itself. This paper analyzes the ethics of personalized advertisements and its impact on society; it also investigates specific companies and highlights possible solutions to the problem.
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