Personalised marketing: Balancing what you can do with what you should do
CMO Magazine - 08/04/2016
But a new Stanford Graduate School of Business paper, written by Professor Pedro Gardete and Yakov Bart, a professor at Northeastern University, has uncovered an interesting insight about highly targeted and personalised ads – namely, they do not translate to higher profits for companies. It’s not surprising the research shows consumers find those ads frustrating and ultimately meaningless.
The research used game theory to build a mathematical model. This model enabled them to look at the impact of a variety of advertising scenarios. It revealed that in many cases, the most effective approach for consumers is to keep information private and for businesses to track less of it.