Pros:
Firstly, this model plays an important role in maintaining the sustainability of our business. As a rental listing platform, the model provides mutual benefits for both users and our platform. It helps stabilize our operations by covering a portion of our development costs. Furthermore, even users who do not engage in transactions on our website contribute to our revenue through interactions with the ads. This revenue, in turn, allows us to offer our services at a more competitive pricing, such as lower commission fees, which can attract more real estate agents to list their properties here. Moreover, our website has a large base of college students, making it an attractive advertising space for businesses targeting similar demographics. Other relevant businesses can effectively reach their target audience, while students can benefit from the services shown in the ads, simplifying their move-in process.
Cons:
However, there are some concerning aspects associated with the advertising revenue model, as exemplified in the podcast. For users, the ads can disrupt their apartment-hunting experience. The deeper issue lies in the potential privacy breaches of user data, which can lead to user mistrust. Users may also find it disconcerting when ads seem overly relevant or linked to their activities on other social media platforms. The normalization of surveillance on the internet, as highlighted in the podcast, is particularly alarming. Even though users are used to being monitored, it still poses a concern for our platform, as we rely on users’ personal information to make listing recommendations.
Reducing Negative Impacts:
To address these adverse effects, we must consider non-intrusive ad formats to provide a smoother experience for users. Additionally, we should keep data collection, usage, and ad relevance transparent to users. Users should be able to control whether to release their personal information for relevant advertising.
