This chapter presents a decision th

This chapter presents a decision theoretic approach to targeted advertising developed by Chickering and Heckerman. One way for a company to advertise its product would be to simply try to reach as many potential customers as possible. However, this could prove to be costly since there is no point in wasting an advertisement on someone who most probably will not buy the product regardless or, worse yet, who would be turned off by the advertisement. Another approach would be to try to identify those customers such that one can expect to increase the profit by sending them advertisements. It discusses that targeted advertising is the process of identifying such customers.