Good news for online retailers: Consumers are most receptive to personalized retail ads over personalized advertisements from businesses in any other industry.
New research from Innovid, an advertising and analytics vendor for television advertising, finds that shoppers want ads that target their interests and behaviors. And 26% of consumers are most interested in personalized ads related to retail. That compares with 18% who wanted personalized ads for entertainment, 14% for consumer packaged goods, 11% for hospitality, 10% for quick-service restaurants, 6% for automotive, and 2% each for telecom and finance.
The study also finds 40% of shoppers have made a purchase as a direct result of a personalized ad, and 31% of shoppers are more loyal to brands that personalize ads. Additionally, 43% of consumers say digital advertisements should be personalized, and 29% said they would be more likely to buy something if an ad was personalized. More than 1,000 U.S. adults were polled online in July 2020 for the study.
When it comes to the likelihood of clicking on a personalized ad, retail also fares well. 38% say there are likely to click on “offers on products they have shown interest in” if they are personalized—behind only “events that interest me” at 41%.”New products or services I like,” which is also retail-related, ranks third at 34%.
When asked to identify brands that personalize effectively, retailers Walmart Inc., No. 3 in the Digital Commerce 360 Top 1000, Apple Inc. (No. 2), Nike Inc. (No. 24), Target Corp. (No. 12), and Kohl’s Corp (No. 21) led the pack.
“While retail is an early adopter of personalization, all verticals can and should take advantage of the benefits of personalization,” says Stephanie Geno, senior vice president of marketing at Innovid. “Not only does dynamic creative improve relevance, it can help brands quickly address massive industry interruptions like what we’ve seen with COVID-19. Marketers that have the flexibility to swap out the creative in real-time and adjust messaging on the fly can appeal directly to consumers during challenging times and maintain consistent, meaningful connections.”
Consumers like contextual personalization ads the most, which are ads that address the context of the consumer at that moment, such as a website she’s browsing or related to a show she’s watching. 39% said they like these types of personalized ads, beating out age- and location-based ads at 31%, and behavioral ads, such as those that factor in search and click history, at 29%.
Additionally, 32% of shoppers like personalized ads, and 30% like brands more when they personalize ads.
Social media delivers more personalized ads than other channels, according to respondents. 45% said they see more personalized ads on social networks such as Facebook and Twitter. 20% said websites, 15% said YouTube, 13% said internet connected TV.
When asked what type of personalized ads they would pay attention to the most, social media (18%) was the top choice, followed by video ads (17%) and TV ads (17%). Website banner ads (13%) and audio ads (2%) ranked lowest for interest.
In terms of the devices that drive personalized ad engagement, mobile came out on top, as 34% said they are most likely to click on a personalized ad on a smartphone or tablet. 33% said desktop, followed by “any device” (6%), Smart TV (4%) and gaming consoles (1%).Favorite