Question
Dynamic pricing in social networks like Facebook, Google, and TikTok impacts users in several ways. Firstly, it can lead to a more personalized user experience as advertisers target specific audiences. Secondly, it may also lead to an increase in the number of ads users see, as advertisers are incentivized to reach larger audiences. Lastly, it could potentially impact the type of content users see, as advertisers with higher bids may get more visibility.
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While many people know Facebook and TikTok as social media networks, they are actually both B2B businesses with advertisers as their main customer. Facebook, Google, TikTok, and many other social networks that incorporate an ad revenue model use a method known as dynamic pricing to charge customers different rates depending on how large of an audience they want to reach. These advertisers then compete with other sellers for the best prices.
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