13 Statistics That Show the Power of Ad Personalization

13 Statistics That Show the Power of Ad Personalization

Personalization has long been touted as the key to advertising nirvana, but what does the data show? To find out, we set off on a journey to find relevant statistics from credible sources, like Accenture, McKinsey, and Gartner. Based on our research, we present three key findings about the state of ad personalization. 

1. Customers expect and welcome personalized advertising experiences 

For many years, marketers have treaded lightly—worried that overly personalized messages may come off as creepy. Fortunately, it appears that their concerns were all for naught. According to Accenture, three in four consumers say businesses have “never communicated with them online in a way that felt too personalized or invasive.” 

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On the contrary, Segment found that a whopping 71% of consumers become frustrated when their experience is impersonal. “Instead of one-way interruption, personalized marketing is about delivering value at just the right moment that a user needs it,” writes best-selling author David Meerman Scott. In other words, personalized ads deliver the right message to the right person at the right time. 

Consumers are particularly open to sharing their behavioral data when shopping is made easier or cheaper as a result, suggests SmarterHQ

2. Meaningful ad personalization delivers compelling business results

Now that we know consumers crave personalized advertising experiences, the question becomes, Does ad personalization deliver business results?

As far as we can tell, the answer is a resounding yes. A whopping nine in 10 marketing leaders say personalization delivers profits, according to Google.

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Those who lead the pack not only see up to 15% more revenue, but they also achieve up to 30% greater spend efficiency, reveals research by McKinsey. Their return on ad spend is maximized as a result—an advertiser’s dream. 

Part of the reason personalization pays is because it encourages consumers to make impulsive decisions. For example, Segment discovered that personalized recommendations inspired half of consumers to buy a product they never intended to buy.  Google similarly found that consumers were “twice as likely to add items to the basket and 40% more likely to spend more than planned” when advertising experiences were highly personalized.  

The more advanced your personalization, the better you fare. When Google “imitated elements of automation” to personalize ads based on user traits, they saw significantly higher returns compared to standard personalization. “When ads had just a few components of meaningfulness, we saw double-digit increases in purchase intent and click-through rates,” confirmed Google’s Ad Research and Insights Manager Katie Herskovitz.  

3. Marketers are pursuing personalization, but struggle to scale it manually

Now that we know personalization is a worthwhile investment for marketers, the question becomes, Can they make it happen? 

The good news is that marketers are already pursuing personalization. Fifty percent are trying to achieve 1:1 personalization, while 34% think better segmentation is sufficient, reveals Gartner. Despite these goals, 85% of chief marketing officers believe they’re on the wrong path, according to McKinsey, which signals a degree of confusion around the best way to approach marketing personalization.

Marketers’ ability to execute ad personalization at scale is limited. As a result, three in four marketing leaders admit they “struggle to scale their personalization efforts,” according to Gartner. It’s no wonder why: Creating personalized ads and landing pages for every audience segment takes a considerable amount of work. For this reason, 65% say they “feel overwhelmed by the need to create more content to support personalization.”

Difficulty securing resources seems to be the culprit. Two-thirds of marketers surveyed by Conversant (now Epsilon) said they don’t have the resources required to execute their personalization programs. Without the right tools and talent, achieving personalization at scale can seem impossible. The only logical way forward may be through artificial intelligence and automation.

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Achieving ad personalization at scale

Personalization truly is the key to advertising nirvana. Consumers are influenced by it, and marketers stand to profit. But there’s a problem: It’s almost impossible to pull off with limited resources. 

Fortunately, with the advent of Post-Click Automation (PCA), marketers can finally achieve personalization at scale. 

Postclick pillars of technology

This new technology leverages four pillars to maximize and automate advertising conversions: 

  • Ad mapping allows you to import your ads accounts and map every ad to a separate post-click experience. From a single dashboard, you can view the entire campaign to ensure it’s message-matched, personalized, and seamless from end to end.
  • Automated creation enables you to create hundreds of pages at once with the help of content blocks. You can then save, edit, and import them into new pages or existing ones.
  • Personalization capabilities allow for the transfer of key audience targeting parameters from the pre-click stage to the post-click stage. With this pillar, you can ensure that every audience member lands on a page tailored to their exact personalization profile.
  • Optimization and AI make it a breeze to improve conversion rates. Technology in this pillar will continually collect data on users visiting your post-click landing pages—learning what they respond positively and negatively to. Then, it will automatically adjust the page content and layout to whatever is most likely to result in conversions.

Get your complimentary conversion analysis 

Postclick is a tech-enabled service that combines the industry’s only PCA platform with a team of conversion experts.

We want to offer you a complimentary analysis of your ad campaigns. We will review your campaigns to analyze your post-click health, compare your site against industry and competitive benchmarks, and identify the most comprehensive opportunities to increase your ROAS. Our team will share insights on how to increase your conversion rates, in addition to a comprehensive competitive analysis. Request your analysis here.

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