Personalization was named the marketing word of the year by the American Association of National Advertisers in 2019. Since then, this data-driven and customized form of engagement has evolved from a buzzword to one of the fundamentals of digital marketing. Companies in the United States are devoting larger shares of their ad budgets towards personalized content each year, which is no surprise considering that well-crafted and unique marketing messages can help companies stand out in today's highly contested e-commerce space. On top of that, personalized engagement can also foster long-lasting relationships between brands and their customers while simultaneously driving revenues. In 2022, the
surpassed eight billion U.S. dollars globally. And even though access to extensive user data will soon be restricted due to the deprecation of third-party cookies, the strive for
is unlikely to wane.
Marketers are making personalization their priority
Survey findings from 2021 revealed that customer experience, personalization, and loyalty were among the top
marketing priorities for CMOs in the United States. Nearly 80 percent of interviewed marketers also planned to deploy a higher level of personalization technology in the future, highlighting the industry's steady path toward consumer-centric promotion. In the U.S. and most other global markets, this path to personalization is paved by consumer data, including browsing histories and purchasing behavior. Roughly 60 percent of marketers worldwide agreed that customer data impacted their decision-making processes, and in the U.S.,
spending on marketing data has nearly doubled since 2018. Another aspect that many marketing professionals agree on is that prohibiting third-party cookie tracking on browsers such as Chrome will likely lead to less personalized consumer experiences and less fruitful engagement.
Consumers expect personalized interactions – but not at all costs
Consumers from the U.S. have grown tired of mismatched marketing messages that are not tailored to their needs or interests. They want to be recognized as individuals rather than a homogenous customer pool and thus expect companies to deliver personalized content and unique experiences reflective of their preferences. Surveys indicated that at least 50 percent of consumers in the U.S. felt favorable towards personalized messages in early 2022, with Gen Z shoppers expressing the highest level of approval. But even so, not all recipients are comfortable
sharing personal data in exchange for personalized ads. Research showed that over 40 percent of U.S. consumers expressed
concerns about online data usage by companies in 2021. While this share has somewhat dropped since 2021, many netizens still feel wary about sharing information that goes beyond the basics of age, gender, or language.
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