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Online behavioral advertising, also known as targeted advertising, is reportedly more than twice as effective in converting users to buyers as traditional online ads, and generates twice as much revenue per ad. The benefits to advertisers from targeted advertising are clear, but consumers also receive benefits, including greater shopping efficiency and more targeted information about desirable products and services. However, targeted advertising raises privacy concerns – and new legislation in California, along with increased regulatory enforcement and class action litigation elsewhere in the country, make it imperative that companies take these concerns seriously.

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