THE ECHO CHAMBER EFFECT: PERSONALIZED ADS AND THE NARROWING OF CONSUMER CHOICE

Abstract

The high rate of development of digital technologies and data analytics has made modern advertising a highly individual ecosystem. Personalized advertising uses consumer data, browsing behavior, and algorithmic profiling in order to provide specific content that is related to individual preferences. Although this concept has made the Internet more relevant and efficient, it has also created the so-called echo chamber effect, where consumers are constantly exposed to the same products, brands, and opinions, which might have restricted awareness of other options. This paper will discuss the role of customized advert in reducing consumer choice by strengthening their likes and limiting them to different alternatives.