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AI and Personalised Advertising: Striking a Balance Between Relevance and Privacy


In the digital age, personalised advertising has transformed the way we interact with the online world. Thanks to the remarkable capabilities of artificial intelligence (AI), we can now experience digital content that aligns closely with our preferences and needs.

This article explores the world of AI and personalised advertising, focusing on how companies are successfully maintaining user privacy while delivering highly relevant content.

The Rise of Personalised Advertising


The realm of personalised advertising has experienced remarkable growth, driven by the effectiveness of tailored content. According to eMarketer, global digital advertising spending reached a staggering $375.1 billion in 2020.

  1. The Power of Personalised Advertising: Personalised ads have proven to be immensely effective. A survey by Infosys revealed that 59% of consumers believe personalised marketing influenced their purchase decisions.

  2. Enhanced ROI: Advertisers are turning to personalised advertising because it significantly boosts their return on investment (ROI). For instance, personalised emails generate six times higher transaction rates, according to Epsilon.

The Positive Role of AI in Personalised Advertising


Artificial intelligence plays a vital role in making personalised advertising effective while respecting user privacy:

  1. Responsible Data Collection: AI systems are designed to collect data responsibly, respecting user privacy and adhering to regulations.

  2. Data Anonymisation: Companies are employing advanced machine learning algorithms to ensure that the data used for personalization is anonymized, safeguarding user identities.

  3. User-Centric Approach: Ethical businesses put user consent at the forefront, ensuring that users have control over their data and how it is used.

The Benefits of AI-Driven Personalised Advertising

 

  1. Enhanced Relevance: AI-powered personalised advertising ensures that users are presented with content that is highly relevant to their interests, enhancing their online experience.

  2. Efficiency for Advertisers: Advertisers benefit from this as well, as they can allocate their resources more efficiently, leading to an improved ROI.

  3. Optimized User Experience: Well-executed personalised advertising can enhance the user experience by reducing irrelevant content and making online interactions more engaging.

Companies Taking Positive Steps


There are numerous instances of companies embracing responsible practices and safeguarding user privacy in personalised advertising:

Example 1: Apple’s Privacy Measures

Apple has been at the forefront of prioritising user privacy. The company’s introduction of App Tracking Transparency (ATT) allows users to decide whether they want to be tracked across apps and websites. This empowers users to control their data and have a say in how it is used for personalised advertising.

Example 2: Google’s Privacy Sandbox

Google has taken significant steps with its Privacy Sandbox initiative. It aims to develop privacy-preserving technologies that enable personalisation without exposing sensitive user data. This innovative approach protects user privacy while still delivering relevant ads.

Example 3: Facebook’s User Controls

In response to privacy concerns, Facebook has introduced user controls and settings that allow users to customise their ad preferences. Users can easily manage the information used to personalise ads and have a clear view of the data that informs their ad experiences.

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Striking a Balance


Companies are increasingly recognising the importance of maintaining a balance between personalised advertising and user privacy. Some key measures they are taking include:

  1. Transparency: Transparent data collection practices help users understand how their data is being used.

  2. User Consent: Obtaining informed consent from users before collecting their data is a fundamental aspect of responsible data use.

  3. Data Protection: Rigorous security measures are put in place to safeguard user data and protect it from breaches.

  4. Regulatory Compliance: Many businesses are adhering to regulations like GDPR and CCPA to ensure that user privacy is protected at every step.

The Future of AI and Personalised Advertising


As AI continues to advance, the capabilities of personalised advertising will only improve. However, it will do so while respecting user privacy and ethical boundaries.

  1. AI-Driven Predictive Analytics: The future holds the promise of even more advanced predictive analytics that anticipate user needs while preserving privacy.

  2. Privacy-Preserving Technologies: Innovations like federated learning are on the horizon, allowing personalisation without compromising data security.

  3. Enhanced Regulation: As public awareness of privacy issues grows, we can expect even more stringent regulations to safeguard user data and promote responsible advertising practices.

Conclusion


AI-driven personalised advertising is a potent tool that benefits both users and advertisers. Companies are increasingly embracing responsible practices, putting user privacy at the forefront of their strategies.

The future of personalised advertising will revolve around ethical and responsible AI use, enhancing user experiences while safeguarding their digital identities. In this journey, we are witnessing a positive transformation in the world of personalised advertising, one that respects user privacy and continually improves the user experience.

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