Twenty personalization statistics to guide your advertising strategy

By IBM Watson Advertising

The advertising industry is a constantly evolving business sector. What once was about simply selling products and services to customers has now become much more personal. Customers are not only looking to buy something that will satisfy their needs but want to align themselves with brands that speak to their values and continue to provide them with personalized, 1:1 customer experiences.

However, with the rise of data privacy concerns and new government regulations, there has also been a shift from traditional personalization to cookieless targeting. While consumers still want these custom experiences, there is an increased expectation that companies should be able to provide this without the use of cookies. Now with machine learning and AI advertising, companies can still deliver these personalized experiences while maintaining user privacy.

In order for advertisers to keep up in an ever-changing industry, there should be a keen interest in their audiences’ unique needs, attitudes, tastes and preferences in order to create the best personal experience for them. Here we’ve collected some of the most telling personalization statistics to help advertisers in guiding their advertising strategy.

Personalized experiences

Consumers want a personalized ad experience from the brands they interact with. Consumers want brands to understand their needs, treating them like an individual instead of a number.

1. 76% of consumers expect customers to understand their needs and expectations.

2. 84% of customers say being treated like a person, not a number, is very important to winning their business.

Frustrations with personalization

On the flip side, consumers feel frustrated when they don’t have a personalized experience. This frustration can cost your brand money and loss of your customers.

3. 56% of consumers are expecting that all of their experiences with a brand be personalized.

4. 59% of customers say tailored engagement based on past interactions is very important to winning their business.

Concerns about privacy

Even though consumers want personalized experiences, they do have concerns about privacy and would like cookieless targeting. Many consumers are distrustful of how organizations are using their information.

5. 57% of customers are uncomfortable with how companies use their personal or business information.

6. 62% of customers say they’re more afraid of their data being compromised now than they were two years ago.

Personal information and personalized experiences

Consumers are, however, open to providing personal information if they know it will benefit them.

7. 70% of millennials are willing to let retailers track their browsing and shopping behaviors in exchange for a better shopping experience.

8. 90% of consumers are willing to share their behavioral data if additional benefits are provided that make shopping cheaper or easier.

Benefits of personalization

There are a number of advantages for advertisers in creating personalized experiences for consumers.

9. Results show that 70% of companies that use advanced personalization have already earned 200% ROI or more from it.

10. Brand loyalty among millennials increases by 28% on average if they receive personalized marketing communications.

Types of personalization

There are various ways organizations can still deliver personalized advertising without the use of cookies. These include the following:

Conversational marketing

Conversational marketing allows organizations to create 1:1 personal experiences.

11. 71% of customers expect companies to communicate with them in real-time.

12. 79%percent of companies say that live chat has had positive results for customer loyalty, sales and revenue.

Weather targeting

Weather ads are one personalized way to increase sales. Leverage information related to weather and location to showcase relevant products based on weather forecasts, such as suntan lotion, skis or mittens.

13. Weather affects around $3 trillion worth of business in the private sector alone in the US.

14. Weather is the 2nd biggest influence on consumer behavior after the state of the economy.

Personalized messaging

Improves consumer engagement through personalized messages, which are meant to drive sales and conversions.

15. Message personalization is the #1 tactic used by email marketers to increase engagement rates.

16. More than 20% of marketers say personalization can improve email engagement.

Boost revenue through personalization

You can expect a revenue boost by making personalization a priority.

17. Companies with a clearly-defined marketing-led personalization function were 38% more likely to earn 400% ROI or more than their counterparts.

18. Companies that don’t have centralized ownership of personalization are 3X more likely to see negative or minimal ROI.

Consumers will choose your brand if you give them a personalized experience

19. Personalization at scale (in which companies have personal interactions with all or a large segment of their customers) often delivers a 1 - 2% lift in total sales for grocery companies and an even higher lift for other retailers.

20. In a study done with Forrester, respondents with an immature personalization strategy saw a 6% increase in sales and a 33% increase in customer loyalty.


Ready to learn more about how personalization can help leverage your advertising strategy? Book a demo with Watson Advertising today!