The invention provides an improved algorithm for selecting paid advertisements for inclusion with search engine results or with any resource retrieved from the Internet. The algorithm collects personalized data of each user and feeds the collected personalized data into search queries of search engines, to retrieve paid advertisements. The advertisements are retrieved based not only on search keywords input by the user, but also based on personal preferences, interests and demographics of the user, as well as the location of the user and the time when the search is performed. In other words, the inventive technology enables each user to receive very targeted, localized and personalized advertising materials.