The Perils of Personalization

Created with DALL-E

Those who have read my stories know that I work with the world’s largest brands. Many of these brands and the people that are responsible for stewarding their brand narrative have begun adopting new technologies in an effort to build advertising fit for an individual. Their aim is “Personalization at Scale.” In its most extreme form this is a branded ad individualized ad for every person who sees it — the visuals, the copy, and content of the ad all tailored to maximize engagement with the brand. This concept which was once only possible in science fiction novels, is quickly becoming a possible reality as the ability to create content at scale using generative AI is rapidly closing the technology gap.

Personally, I think there is immense value in personalization, but this personalization has more to do with context than content. I want to know when individuals are most receptive to brand advertising. While much of the focus has been on creation, goals for personalization should be focused more heavily on curation (what ad is best to deliver) and context (when and where).

In this article, I am going to layout the possible negative outcomes and unintended consequences of this endeavor. It’s time to dive deep and dissect this trend, not through the lens of tech capabilities and what is possible, but rather from a strategic standpoint. Are we really heading towards marketing nirvana, or is it just a mirage?

Personalization runs counter to advertising best practices.

1. Diluting collective appeal: When you tailor every ad to fit individual tastes, you’re risking your brand’s core identity. Imagine trying to be a friend to everyone but ending up not really knowing who you are. When someone like this is in your friend group, they are quickly labelled as inauthentic. You need a singlar brand story that everyone gets, not a thousand brand stories that dillute the collective meaning of the brand itself.
2. No one likes a flip-flopper: Ever met someone who changes their opinions every time you talk to them? Annoying, right? That’s your brand when ads are too personalized. Consistency builds trust. If your ads do not have a unifying construct, brands will face a complete crisis of identity.
3. All together never: Brands aren’t just selling products; they’re selling connections. Think about the big brands — part of what they sell is the feeling of being part of something bigger. This fragmentation will lead to a loss of the cohesive brand narrative that resonates broadly with its audience​​s.

Tripping over dollars to pick up pennies

1. Juice and squeezed: Crafting a unique ad for each person sounds cool, but is it really worth it? There’s a point where spending more doesn’t really get you more. We might end up spending a fortune just to get a little extra attention. While cost to produce is declining, the level of effort and hourly rates of the experts required to build far outweigh the extra N clicks an ad will drive.
2. Process, Process, Process: Getting super personal with ads means juggling a ton of content. It’s like trying to cook a five-course meal for each guest at a party. The kitchen’s going to be a mess, and you’ll probably end up serving cold spaghetti.
3. So, Did It Work or Not? Fast moving metrics have vacuumed up the attention of marketing leaders across all industries. These metrics are designed to measure what works and what doesn’t so that you can do more good and eliminate the bad. With so much variation, the ability to measure effectively will be noise over signal.

Missing Out on the Party

1. Death to the water cooler talk: Remember those ads everyone talks about after the Super Bowl? That’s the magic of a shared experience. If every ad is personalized, what are we all going to chat about? You might miss out on creating those “Did you see that ad?” moments.
2. Viral no more: Ads that hit a common cultural nerve are the ones that go viral. If your ad speaks just to one person, who’s going to share it? It’s like telling an inside joke that only one person in the room understands.
3. Letting go of loyalty: Great marketing can create a fan club — in brand speak we call these “brand advocates”, a community of people who buy your brand, who talk about it, who share it, and recommend it. If every ad feels like a one-on-one conversation, people learning about your brand will have misaligned expectations based on what the brand advocates share about it.

So, while it’s tempting to jump on the hyper-personalization bandwagon, let’s not forget the power of a strong, consistent brand message, the value of being cost-effective, and the magic of creating ads that bring people together. It is very possible that individualized ads for everyone create a brand for no one.