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Personalised Advertising in Retail

Modern day consumers are overwhelmed and bombarded by a range of marketing-related messages. On average, users see nearly 250 marketing messages daily, from email newsletters to push notifications. With this in mind, it has become increasingly important for businesses to develop new ways of gaining consumer mindshare. To stand out from the shuffle of generic display advertising, retailers are exploring the benefits of highly personalised and targeted advertising. The personalisation of advertisements “creates customer experiences, or interactions, that are relevant, unique and convenient” and ultimately helps structure a mutually beneficial relationship between consumers and businesses.

Looking at some of the latest figures and statistics around personalised marketing in retail, it becomes clear why advertisers for retailers such as Amazon are on the cusp of launching dynamic video ad units based on what algorithms have detected the end-user will be most interested in. Marketing teams are now angling to understand consumers on a more granular level online, and focus on individual users rather than labelling their audience as an entirety. 90% of marketers believe that personalisation marketing is the future, and the statistics only support this belief:

56% of online shoppers are more likely to return to a site that recommends products

Over half of online shoppers claim that they are more likely to return to a site that offers personalised product recommendations. Targeted advertising of unique products towards a particular user can significantly decrease the time spent on the website, and speed up the purchasing process. This not only improves the sales cycle for the business, but provides a more simple and quick shopping journey for the end user to follow.

86% of consumers say personalised advertising plays a role in their purchasing decisions

Personalised ads can often broaden the potential purchases of the consumer, as well as create valuable customer relationships. Both of these byproducts of personalisation influence the purchasing decisions of the buyer by targeting desirable products that consequently increase check-out size.

In the example above, users who may have only been browsing to purchase one product, may in fact end up purchasing an entire outfit due to the advertiser’s strategic product placement and the influence this has on the end-user.

57% of online users will provide personal information, as long as it is for their benefit

Finding a balance between intrusive advertising and personalised advertising is crucial, as many data capturing sources such as clickstream data can be controversial in the eyes of the end-user. In order to deliver targeted advertisements, a certain degree of personal data is needed to contribute towards the algorithms that decide on the recommendations. Taking this into account, 64% of marketers said there has been a shift toward increased consumer willingness to provide personal information, in exchange for targeted offers and relevant benefits. As long as the data is being manipulated in a way that is beneficial for the consumer, over half are happy to provide this information to the advertiser.

59% of advertisers report a good ROI after personalising their online stores

An extremely high portion of online retailers have reported an improvement in return on investment since introducing personalised advertisements to their users. As a retailer providing a bespoke shopping experience, the consumer is made to feel understood and valued. In turn, visitors are converting into customers more quickly, with higher shopping cart values. Retailers leading in this digital transformation have seen unparalleled benefits, ranking 26% more profitable overall.

Analysing the on-site browsing habits of visitors can allow a brand to suggest products that are deemed “of interest” to the consumer. Personalised recommendations are an effective way of boosting sales, as well as improving the shopping experience for the end-user. Chief Executive of ASOS, who reaps the benefits of this method, stated “browsing through thousands of products is not what customers want to be doing. Our customer base needs and wants inspiration.”


As marketing techniques continue to develop, the battle of obtaining brand awareness will grow even more fierce. The importance of leveraging identity data to promote a personalised shopping experiences will become pivotal in order to secure a tangible return on investment for the business. There are a number of strategic routes advertisers can explore in order to create an efficacious advertising strategy, as previously covered by mporium here.  

Have you tried using personalisation to connect with consumers? Get in touch if you want to find out the benefits of personalisation across digital marketing activity.

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