Providing effective personalization while respecting consumers’ data privacy has become a delicate balancing act for brands. AI is reshaping what is possible for marketers, improving their collective ability to deploy the right offer or promotion to the right consumer at precisely the right time. However, data privacy remains a top concern for consumers, and AI-driven insights must be used responsibly.
As privacy expectations rise, optimizing personalization requires a shift toward transparency, a clear value exchange, and an emphasis on zero-party data—information consumers willingly share about their preferences. By building personalized experiences around these consumer-approved data sources, brands can create relevant, engaging interactions while respecting customer boundaries and fostering trust.
Brand Interactions: Creepy vs. Cool
Brands walk a fine line between delivering “cool” personalized experiences and crossing into “creepy” territory. Consumers appreciate various forms of personalization, especially those that feel relevant and respectful. They have a strong preference for interactions that are timely and directly useful while showing clear discomfort with those perceived as overly invasive or poorly targeted.
For example, 73% of respondents find product recommendations based on their past purchases “cool,” highlighting a clear preference for personalized, relevant suggestions. Similarly, 80% of respondents view personalized birthday offers as positive—a fun and thoughtful way to acknowledge the customer without seeming invasive.
However, there is a tipping point: 53% of respondents find ads based on third-party cookies “creepy,” signaling a general discomfort with tracking mechanisms that feel indirect or hidden. Similarly, 55% view location-based ads from unknown brands as intrusive, likely because they lack a clear connection to their past interactions or preferences.
Immediate engagement tactics can also be divisive. Tailored promotions within two minutes of visiting a site elicit mixed reactions—45% find it “cool,” while 40% find it “creepy.” This suggests that speed in personalization must be balanced with context, so it doesn’t appear intrusive.
Overall, the data shows that respondents felt positively about personalization when it is helpful and expected, but they retreat when interactions feel presumptive or disconnected with prior engagements.
Consumers are more receptive to personalization based on their own past behavior—such as product recommendations or birthday offers—so, prioritize zero-party data (which consumers willingly provide) over third-party data, as well as offer clear communication about how their information is used to shape their experience.
The average site visitor is ready to make a purchase immediately, so ensuring your offer is presented at the right time is critical. By giving audiences a few minutes to explore a site before presenting promotions, it can prevent the interaction from feeling intrusive. Consider pacing outreach based on on-site actions or a short delay, allowing visitors to initiate and continue their browsing experience before receiving tailored offers.
Encouraging customers to specify areas of interest, such as hobbies or lifestyle topics, in their account preferences can help support more impactful personalized messages as they can control the relevance of the recommendations they receive.
Implement preference centers and make it easy for customers to adjust how their data is used by letting them control the frequency and type of messages they receive. Additionally, a clear and easy opt-out from specific types of messages can increase trust and engagement over time (and it’s just good practice!).
Ensure that recommendations, promotions, and interactions feel contextually relevant rather than overly automated or intrusive. Marketing technology can help tailor brand experiences naturally—like offering complementary items based on recent purchases—but it should support a genuinely helpful experience rather than one that feels purely transactional.
Today’s consumers are well acquainted with the concept of value exchange: they share their personal information, and in return, brands offer perks which enhance their experience. Encouragingly, the majority of respondents are open to participating in this exchange—but only if what they receive in return feels worthwhile.
As previously mentioned, while price is not the ultimate deciding factor in a purchase decision, discounts and coupons still top the list of offerings respondents seek in exchange for their personal data at 95%, followed closely by loyalty points and rewards at 94%. These familiar, tangible benefits have widespread appeal across all age groups, a s they deliver a sense of instant gratification. That said, incentives can expand beyond financial ones. Many respondents, especially younger ones, indicated value in new and different types of perks, such as non-monetary benefits like unlocking exclusive content (61%) and fostering a brand community (52%). These seemingly have broader appeal with younger demographics as they satisfy a growing desire for experiences that go beyond a transaction. Offering exclusive videos, behind-the-scenes content, a chance to see their own consumer-generated content online, or dedicated community spaces to connect with like-minded individuals can deepen relationships with consumers who crave more meaningful brand interaction.
Brands often provide something of value in exchange for personal data
AI-Driven Personalization:
What Resonates?
Every day, AI is unlocking new ways for brands to connect with consumers at scale, from personalized recommendations to automated customer service to predictive analytics. However, it also comes with a challenge: making interactions feel helpful without crossing into uncomfortable territory.
Though the number of respondents who cite a likelihood to engage with AI-assisted marketing aren’t particularly significant, some appreciate AI enhancements that align with their preferences in non-intrusive ways, particularly when they add convenience or a sense of exclusivity to the experience. For example, dynamic offers and personalized product recommendations rank among the most appealing uses of AI, with many consumers valuing how these features create a seamless, tailored experience.
Visual personalization also stands out, as consumers enjoy custom content that reflects their interests in the moment. Relatively speaking, younger consumers respond positively to AI-generated images and targeted social media updates, showing a greater openness to digital experiences that mirror their unique styles and tastes. However, more personalized approaches, such as ads with voice-overs which use their names, or location-targeted messaging, often push the boundary of comfort, especially for older demographics.
At present, AI personalization seems to work best when it enhances relevance without being overly familiar or intrusive. By embracing tailored recommendations, adaptive web content, and visually engaging customizations, brands can bring a fresh, appealing dimension to consumer interactions.
