Personalization’s double-edged sword: Balancing relevance with intrusiveness

This article is co-authored with Mike Froggatt, Senior Director, Analyst at Gartner.

Digital personalization is a double-edged sword. While it can significantly improve user experiences, it also runs the risk of alienating consumers if not implemented thoughtfully. Digital marketing leaders they must carefully manage the reality and perceptions around personalization.

Gartner’s consumer survey of 2,001 respondents in April and May 2024 found that 63% admit that brands are good at guessing what they might be interested in 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 say they feel more positive or neutral about brands after receiving personalized recommendations online. This suggests that consumers expect a certain degree of personalization in their digital interactions. But there are differences of opinion. For example, more (47%) baby boomers felt negative when receiving a product advertisement after discussing or mentioning the product or brand online than younger generations. This highlights the need for marketers to tailor their strategies to different demographics.

The challenge of perceived intrusiveness

While device manufacturers and media companies have long debunked the idea that devices and apps listen to consumers, consumers don’t necessarily believe it. As this chart shows, 81% say that after discussing a product offline, they either received an ad for the product online or a product recommendation on the retailer’s website.

In reality, consumers receive product recommendations and retargeted ads due to multiple factors, including interactions with smart speakers and purchase history. This adds to the perception that devices and apps are monitoring consumers’ offline audio conversations. This can erode consumer confidence and highlights why digital marketers should be cautious about delivering overly personalized ads and recommendations.

Using voice assistants to profile consumers can also raise legitimate data privacy concerns. Many consumers remain unaware of the specific data points used to target ads, highlighting the importance of transparency in data collection practices.

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To better align advertising strategies with consumer expectations, marketing managers should consider the following recommendations:

• Increase transparency: Communicate how and why consumer data is used in product recommendations and retargeted ads. Transparency builds trust and can make your brand stand out in a crowded marketplace.
• Comply with privacy regulations: Stay ahead of evolving privacy regulations by assessing your organization’s data collection practices and readiness. Bridging the gap between marketing and advertising technology is essential for seamless integration and compliance.
• Use first-party data: Expand the use of first-party data for targeting, reducing reliance on cookies and mitigating associated liabilities. Collaborate with key adtech and media partners to maximize the effectiveness of your campaigns.
• Explore ad targeting technologies: Stay informed about how adtech companies are using consumer signals to deliver customized ads. This can help improve your targeting strategies and improve user experiences.

Preserving brand reputation

Almost 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 remain in ensuring that ads are placed in the appropriate context.

Repetitive video and audio ads also frustrate consumers, with 47% expressing negative feelings toward brands that use such tactics. Leveraging programmatic buying for connected TV (CTV) and digital audio advertising can help neutralize repeats by enabling better frequency capping and campaign optimization across multiple streaming platforms.

To maintain a positive brand image, consider these strategies:

• Use secure sites and whitelists: Start with known secure sites and work with adtech partners to achieve audience numbers. Use whitelists and blacklists judiciously to effectively manage your ad placements.
• Get involved in private markets: Leverage Private Marketplaces (PMP) and Programmatic Guaranteed (PG) inventory for more controlled ad placements. Use trusted buying partners and measurement and verification tools to ensure quality impressions.
• Contextual targeting: Partner with providers that can target certain types of content or block unwanted content. Ensure that agreements include provisions for quality assurance.

Brand misrepresentation threats

Brand misrepresentation, including phishing attacks, poses a significant risk to consumer confidence.

Leaders must deploy social media monitoring tools to detect and address brand misrepresentation and engage with communications and legal teams to formulate a strong response strategy. In addition, they must proactively share how customer data is used to improve ads and digital experiences to improve organizational reliability, credibility and transparency.

Digital marketers must strike a delicate balance between personalization and consumer trust. Organizations can foster lasting relationships with their audiences in an increasingly digital world by aligning advertising practices with consumer preferences and preserving brand reputation.