Personalized advertising isn't all it's been cracked up to be. Contrary to popular practice, personalized ads not only don't drive conversions, but are likely to be ignored, according to the study by
MIT Sloan School of Management Prof. Catherine Tucker and London Business School Prof. Anja Lambrecht. The data for the project were provided by Havas Digital from the Artemis Database.
Using
data from an online travel firm, Tucker and Lambrecht addressed the question of whether it is always optimal for advertisers to provide more specific ad content based on consumers' earlier product
interests, as well as when increased specificity of advertising is effective.
When online shoppers were simply looking at a product category, ads that matched their prior Web browsing interests
were ineffective. However, after consumers had visited a review site to seek out information about product details -- and were closer to a purchase -- then personalized ads became more effective than
generic ads intended for a mass audience. --Tanya Irwin
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