Ads Personalization as One of Conversion Growth Factors

Brands can build more effective communications with their audience by means of relevant personalized messages. For example, a video ad at the beginning of a video can increase purchase intent by 5% through more relevant personalized ads.

Ads personalization is one of the most effective tools that help brands create the most relevant ads. The digital market in Russia, as well as the global one, is moving towards personalized communication. This approach allows for both enhanced effectiveness of media investments and an extra growth of brand metrics.

Personalization Affects Brand Perception

Personalized communication enables an increased ad click rate by 90% on average.

Moreover, with personalization based on user interests, geolocation, search queries, and behavioral targeting, brand awareness increases by 10% on average, and the intent to purchase a product grows by 7% on average, compared to non-personalized communication.

Personalization Allows for Increased Conversion

Personalization usage in one form or another massively increases conversion rates.

The simplest way is user identification, such as 'watches for real men', 'laptops for businesspeople' etc. This method lets you identify a user, stating that this product is addressed directly to them as a student or a businessperson.

What Data Can Be Used for Ads Personalization?

An ad in nearly all advertising systems can be personalized by:

• Sex,
• Age,
• Social status,
• Interests,
• Education and job (occupation),
• Geolocation,
• Devices,
• Query keywords. Google and Yandex are not the only search networks that enable showing ads based on users' search requests. VKontakte, the most popular social networking service in Russia, also allows for ads targeting on the basis of search queries, as well as a history of interaction with VKontakte pages, communities, and goods, Youla blackboard, Odnoklassniki, Mail.ru master project, and content projects such as Lady, Kids, and others.

For example, this ad is personalized by sex and age: 'Looking for a 33-year-old female trainee'.

Another example is ad personalization by occupation.

The most powerful opportunities for personalization are presented in social media (for example, on VKontakte) where users can be classified by big data:

• Birthday. A birthday can be set via a VKontakte advertising account: today, tomorrow, within a week. For instance, you can launch an ad with a promo code or a discount for birthday celebrants.
• Membership in a certain community (and more than one). These can be communities themed relevantly or ones of competitors' brands. You can compile lists of communities either manually or using specialized services such as TargetHunter. In that case, it is important to change the ad so that it could meet the interests of one or another group audience as much as possible.
• Personalization by user name. This mechanism is more complicated for setting up and getting approval, but it is very effective and shows higher results than a standard advertisement. Narrow personalization helps break through banner blindness and garner attention. This way works fine for mass audiences and products. However, it is worth bearing in mind that name personalization may just fail to get off the ground for a narrower audience because of small databases.

Marketing experts refer to personalization as the highest priority area for business promotion in the market. Personalized messages let us make ads as close to the target audience as possible and boost ROI.

Nevertheless, it is worth noting that a preparatory process for launching a personalized advertising campaign markedly differs from target and context ads. For example, in order to launch ads with name personalization, you will have to prepare banners and/or messages for every user name in the targeting audience, which will lead to an increase in advertising expenses. To get ads that are set up well and bring the maximum result, we recommend turning to specialized agencies for planning, setup, maintenance, and adaptation of personalized advertising campaigns.

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