IPG Study Finds Strong Link Between Ad Personalization And Effectiveness

A new study from Interpublic’s Magna and the IPG Media Lab reinforces the idea—embraced by the industry for a number of years now—that ad personalization is one of the best techniques to help brands deliver more relevant and effective ad experiences. 

The study focused on three key ad categories—auto, retail and finance—and includes responses from more than 6,000 participants. Testing was conducted on two audience types: brand target demographics and high-value audiences based on people-based IDs created by precision targeting platform Kinesso. Six types of data sources for personalization were tested: demos, past purchases, location, life events, search terms and precision messages for high-value audiences. 

The study found that most forms of ad personalization had some value and that higher levels of personalization were more effective at shifting difficult-to-move metrics.  The study found that  personalizing ads based on major life events struck an emotional chord with people, leaving them interested in hearing more from the brand (+16%) and more likely to purchase the brand (+12%) compared to the same video ad without a personalized message. Similarly, personalizing ads based on search terms, which are also deemed more sensitive than other forms of data such as age, drove brand preference (+8%). 



“Relevance is a critical part of brand marketing strategy because people today are inundated with content on a daily basis and it can be overwhelming,” stated Kara Manatt, senior vice president/ group director, intelligence solutions at Magna Global. “Personalized messaging can not only help create more relevant ads, but also help amplify brand stories, forging stronger, more solid personal connections.” 

Access the full report here.

1 comment about "IPG Study Finds Strong Link Between Ad Personalization And Effectiveness".
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  1. Ed Papazian from Media Dynamics Inc, October 14, 2020 at 2:30 a.m.

    Frankly, Steve, I would have expected a much larger improvement over "standard ads" than is shown in the chart. Since the CPMs being asked for getting "relevant ads" to consumers are often two or three times the norm, why bother for a mere 10-15% gain?

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