The advertising revenue model presents both pros and cons. For our platform, a rental listing site, there are several advantages for the users. Firstly, this model allows us to offer enhanced features to students for free in a sustainable manner. Students will be able to receive (1) a more advanced algorithm for navigating the apartment hunting process and (2) receive a better pricing deal. Secondly, providing specific types of ads on our product can aid the student’s well-being. As students are inexperienced renters, certain ads can offer valuable insights or information on deals into move-ins, utilities, and other relevant concerns, thus enhancing the overall housing-hunting experience. Likewise, for the internet as a whole, providing relevant advertisements to end-users can promote the well-being of these users. As with any person, it is impossible to be aware of every product that one needs or desires. Therefore, if executed properly, online advertisements can act as a helpful liaison, bridging users with products that could enhance their quality of life.
However, there are many cons to be aware of. The most significant concern is privacy. For our product, especially as we collect personal information from students, it becomes vital to utilize this information responsibly. The problem with the model is that it incentivizes platforms to over-tailor the ads for the user, which could lead to misuse of personal information. Moreover, even if the platform does not necessarily utilize personal information for online ads, overly-tailored ads may lead students to suspect that our platform is mishandling their private information. The same could be said about the internet as a whole. The advertising revenue model incentivizes companies to over-leverage data (often resulting in higher surveillance), which then normalizes the surveillance in the internet ecosystem. Such issues on the ethical handling of personal information must be considered with caution.
