Effects of New Forms of Advertising

Would you be willing to let a phone company eavesdrop on your conversations if you got free service? Pudding Media, a startup based in San Jose, Calif., is listening in on your phone calls and placing ads on your internet screen based on what it hears. For example, a conversation about the New York Knicks might elicit ads about basketball tickets.

Ariel Maislos, chief executive of Pudding Media, says that young people don't care as much about privacy as they do about saving money.

“The trade-off of getting personalized content versus privacy is a concept that is accepted in the world,” he said.

Do you agree? The company just raised $8 million so they must be doing something right! Read this article and judge for yourself:

http://www.nytimes.com/2007/09/24/business/media/24adcol.html