Marketing personalization - Statistics & Facts

Marketing personalization is increasingly popular among marketers and consumers, with marketers growing more aware of best practices and strategies and consumers warming to being targeted in this way. The use of personal data to initiate targeted advertising — for example sending consumers an e-mail which addresses them by name, or using their purchase history to target them for further recommendations — has frequently been described as 'creepy', however, its popularity is growing and marketing professionals are not only ensuring that they monitor the efficacy of personalization but also dedicating portions of their budgets to this style of marketing.

The share of marketing budgets devoted to personalized digital marketing varies, demonstrated by a worldwide survey held in May 2016 where 56 percent of respondents said that they dedicated between one and ten percent of their marketing budget to personalized digital communications, compared to three percent of responding marketers who said that they had used 41 to 50 percent of their budget for this purpose. Further, in March 2017, marketing professionals in the United States were asked about the leading criteria they used to personalize experiences for the consumer. Only 34 percent used a browser in order to personalize experiences, whereas 60 percent of respondents focused on location.

According to marketers worldwide, increased conversion rates are the leading benefit from website and in-app personalization, with 63 percent of respondents citing an increase in conversion rates as the main benefit, although 32 percent said that increased e-commerce revenues were the main benefit they saw from using website and in-app personalization. Personalization in e-mail marketing proved to be lucrative for online retailers in 2016, as shown in a worldwide survey which revealed that the most effective e-mail tactic in driving conversions was personalization. Among the respondents, 57.33 percent found that this was the most effective strategy, in comparison to 20.67 percent who cited geo-targeting as the most successful tactic.

It is evident that personalized content is popular among consumers in the U.S. from the findings of an April 2017 survey on attitudes towards marketing content personalization. Respondents saying that they found this form of marketing very or somewhat appealing amounted to 90 percent, with just four percent of respondents finding personalization very or not at all appealing. This level of appeal is corroborated by another survey where U.S. consumers indicated that they were largely accepting of companies using their purchase history for shopping recommendations sent to mobile phones, so much so that just 11 percent of respondents indicated that they would never find this method acceptable. That said, relevancy and choice proved to be key in terms of whether or not consumers found this tactic acceptable, with 48 percent saying that it is generally acceptable as long as they can opt in and out of any offers, and 41 percent finding the use of their purchase history for shopping recommendations acceptable only if the offers were relevant or tied to their purchase history. Overall though, consumers demonstrated a generally positive attitude towards personalization and have even grown to expect it.



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