This article was co-authored with Mike Froggatt, Senior Director, Analyst, at Gartner.
Digital personalization is a double-edged sword. While it may well significantly enhance customer experiences, it also risks alienating consumers if not executed thoughtfully. Digital marketing leaders must fastidiously manage the truth and perceptions around personalization.
A Gartner consumer survey of two,001 respondents in April and May 2024 revealed that 63% acknowledge that brands are good at guessing what they is perhaps concerned about buying, indicating progress in personalization efforts. The integration of generative AI technologies is poised to further refine these strategies by enabling more nuanced audience targeting and personalized customer journeys.
Encouragingly, 75% of consumers report more positive or neutral toward brands after receiving personalized recommendations online. This suggests that customers have come to expect a level of personalization of their digital interactions. But differences in attitudes exist. For example, more (47%) baby boomers felt negatively once they received an commercial for a product after discussing or mentioning a product or brand online than younger generations. This highlights the necessity for marketers to tailor their strategies to different demographic groups.
The challenge of perceived intrusiveness
Although device manufacturers and media corporations have long refuted the concept devices and apps hearken to consumers, consumers don’t necessarily consider this. As this chart shows, 81% say that after discussing a product offline, they either received an ad for the product online or a advice for the product on a retailer’s website.
In reality, consumers receive product recommendations and retargeted advertisements as a result of multiple aspects, including interactions with smart speakers and buy histories. This contributes to the perception that devices and apps monitor consumers’ offline audio conversations. This can erode consumer trust and underscores why digital marketers should cautiously approach delivering excessively personalized advertisements and suggestions.
Using voice assistants for consumer profiling can even raise legitimate concerns about data privacy. Many consumers remain unaware of the particular data points used for ad targeting, underscoring the importance of transparency in data collection practices.
Dig deeper: AI is poised to disrupt the world of martech vendors and users
To higher align promoting strategies with consumer expectations, marketing leaders should consider the next recommendations:
- Enhance transparency: Communicate how and why consumer data is utilized in product recommendations and retargeted ads. Transparency builds trust and may differentiate your brand in a crowded marketplace.
- Adapt to privacy regulations: Stay ahead of evolving privacy regulations by assessing your organization’s data collection practices and readiness. Bridging the gap between marketing and promoting technology is crucial for seamless integration and compliance.
- Leverage first-party data: Expand using first-party data for targeting, reducing reliance on cookies and mitigating associated liabilities. Collaborate with key adtech and media partners to maximise the effectiveness of your campaigns.
- Investigate ad targeting technologies: Stay informed about how adtech corporations use consumer signals to deliver personalized ads. This may help refine your targeting strategies and improve consumer experiences.
Safeguarding brand fame
Nearly one-half of consumers (49%) develop a negative view of a brand when its ads appear next to offensive content. Despite investments in brand safety technologies, challenges persist in ensuring ads are placed in appropriate contexts.
Repetitive video and audio ads also frustrate consumers, with 47% expressing negative sentiments towards brands employing such tactics. Leveraging programmatic buying for connected TV (CTV) and digital audio promoting may help offset repetition by enabling higher frequency capping and campaign optimization across multiple streaming platforms.
To maintain a positive brand image, consider these strategies:
- Utilize secure sites and allowlists: Start with known secure sites and collaborate with adtech partners to realize audience scale. Employ allowlists and denylists judiciously to administer ad placements effectively.
- Engage with private marketplaces: Leverage private marketplaces (PMPs) and programmatic guaranteed (PG) inventory for more controlled ad placements. Use vetted buying partners and measurement and verification tools to make sure quality impressions.
- Contextual targeting: Partner with providers able to targeting specific content types or blocking undesirable content. Ensure agreements include provisions for quality assurance.
Brand impersonation threats
Brand impersonation, including spoofing attacks, poses significant risks to consumer trust.
Leaders must implement social media monitoring tools to detect and address brand impersonation and interact with communications and legal teams to formulate a strong response strategy. In addition, they need to proactively share how customer data is used to enhance ads and digital experiences to reinforce organizational trustworthiness, credibility, and transparency.
Digital marketing leaders must balance the fragile balance between personalization and consumer trust. Organizations can foster lasting relationships with their audiences in an increasingly digital world by aligning promoting practices with consumer preferences and safeguarding brand fame.
The post Personalization’s double-edged sword: Balancing relevance with intrusiveness appeared first on MarTech.
Read the complete article here
