Will Personalized Advertising Take Online Businesses To The Next Level in 2020?

Personalized advertising has become a priority for online businesses, but many are still struggling to implement the right strategies to achieve the intended results. As the new year comes knocking at our doors, personalization will become relevant and important for businesses.

This stems from the fact that consumers yearn for an experience tailored to their interests and habits. In fact, new epsilon research indicates that 80 percent of people are more likely to do business with a brand that makes the experience more personal. That is why marketers and business owners focus on using personalized advertising to attract potential customers and quicken the buying journey.

The Best Deals For Digital Design Assets - InkyDeals.com. Learn More>>

But what exactly is personalized advertising, and does it work? In this blog post, we will walk you through the nitty-gritty of personalized advertising and also explain the benefits of such type of marketing. We will also discuss the challenges to personalization and find out if it will trend on into the next year.

Let’s get started!

What is personalized advertising?

Personalized ads are the type of ads that are based on the user’s historical data and their preferences. It improves the relevance of advertising as it is mainly influenced by user’s search queries, website visits, app activity, demographics, and location. This allows marketers to improve user experience and maximize engagement and sales. Geo-targeting is a way to restrict your ad audience to a certain geographic area.

Contrary to non-personalized advertising, which is targeted using contextual information or the current query terms, personalized advertising use cookies to save users’ data and leverages it when showing ads. Non-personalized ads use cookies too, but not for the purpose of ad targeting.

Additionally, non-personalized advertising appeals to a general target market, whereas personalized ads reach out to a specific group of audience that has already interacted with the brand.

For instance, a person who recently visited an online For instance, a person who recently visited an online Leather Skin Shop might encounter ads that show a leather jacket at a discounted price. Here is why such advertising works.

Recent research from Adlucent suggests that 71 percent of consumers (7 out of 10 users) want an advertising experience that is tailored to their shopping behavior and preferences. Infosys research found a similar desire for personalization. The study they conducted revealed that 31 percent of consumers crave for a more personalized shopping experience than it currently is.

This benefits consumers in not only finding new products or reducing irrelevant ads but also makes the entire shopping experience a breeze.

2.Lucrative ROI:

A recent report found that 96 percent of website visitors leave a business site without purchasing a product or using your service. This means you need to come up with new marketing solutions that can positively impact your bottom line.

By displaying ads that are customized to the likes and needs of individual customers, you are more likely to end up with happy and satisfied customers.

Consumer satisfaction directly translates into sales since the happier a customer is with a brand, the more they will spend and do business with the brand. Furthermore, these customers will influence the purchasing decisions of other people by recommending the business in social circles.

3. Personalized ads maximize engagement:

The biggest benefit of targeted advertising is that it allows businesses to target customers and prospects in a way that increases user engagement. Marketers track user traits and behavior and design ads that appeal to their interests, needs, and other preferences.

Experian found that personalized emails have 29 percent higher open rates as well as 41 percent higher click through rates (CTR) as compared to non-personalized emails.

Customers are more likely to engage with a post or an ad that seems to have some relevance in their life. Personalized advertising allows you to connect with consumers that are most ready to convert. It makes the entire engagement meaningful and productive both for businesses and consumers.

Challenges to personalized advertising:

Despite the benefits of customized ads for businesses and consumers, there are some concerns that challenge the growth of personalized advertising. Below, we outline the two major challenges.

i. Cost:

While it all comes down to the type and size of your business, personalization can be a cost-prohibitive decision for certain businesses. Marketers need access to previous purchase history and behavior-monitoring software to track future purchases.
Access to the data and monitoring software require a considerable investment that only large businesses can afford. Not to mention the money that will go into designing ad banners and other promotional material.

ii. Privacy concerns:

On one hand, consumers demand greater personalization, but a majority of them also perceive personalized advertising as an act of privacy invasion. According to Marketingcharts, on average, 40 percent of users worldwide have shown concerns about the amount of data that businesses have on them.

These fears have been aggravated further by the recent Facebook-Cambridge Analytica scandal, which started a new data privacy debate. A majority of consumers are feeling uneasy by the ability of software and algorithms to track their behavior and personal traits.

A survey by Forbes found that only 17 percent of consumers believe that personalized advertising, as used by Facebook, Twitter, and other sites and apps, is ethical.

For the overwhelming majority of consumers, it is an unethical practice. For instance, when the media giant Netflix tried to leverage data related to customers’ viewing habits and used it to add humor to their tweet, the response was not very friendly.

These concerns, however, haven’t stopped the growth of personalized advertising.


There is a general confusion about personalized advertising, the tracking process works, and the tools being used. Consumers are skeptical about the personal data that is being compromised, but they also want highly personalized news feeds.

The confusion poses a threat to personalized advertising, which, otherwise, holds a lot of potential for business growth and improving user experience.

Once the big questions about the balance of data privacy and personalization are settled, that is when the fruits of personalization will become evident. But despite the current bumpy ride, personalized advertising is growing with brighter prospects.

(Visited 178 time, 1 visit today)

3 Comments Will Personalized Advertising Take Online Businesses To The Next Level in 2020?

  1. Tanvira Feb 3, 2020 at 05:45

    96% Are Huge!
    Almost 100% Visitor Gone Without Taking Any Action On Blog WOOW

  2. Bill Roger Feb 13, 2020 at 03:15

    People need to invest in improving user experience to enhance the conversion rate.

  3. Cole Sprouse Riverdale Mar 17, 2020 at 03:55

    It Appears To Be A Very Interesting Article, I Really Like It Though It Seems A Bit Detailed But That’s What I Always Wanted Literally. By The Way I Also Have A Website Do Check it Out


Leave A Comment

Your email address will not be published.