Consumers say 40% of ads feel irrelevant, yet 45% like relevant ones. With CPM up 15% in holidays, AI boosts ROAS by 10%-25% through better personalization.
A Bain survey found that 45% of shoppers are open to sponsored ads if they are relevant. Yet, 40% of them feel that most ads today fail to resonate. This disconnect leads to wasted budgets, annoyed shoppers, and fewer conversions. Poorly targeted ads, like showing products already purchased or irrelevant sizes, dilute customer trust. However, when done right, personalized ads can enhance shopping experiences, making consumers feel valued and understood. AI now enables this level of personalization, helping retailers deliver ads that feel timely and useful, fostering engagement and loyalty.
Holiday ad costs are surging, with cost-per-thousand impressions (CPM) on social media rising by 10%-15%, according to Sensor Tower. Retailers are responding by embracing AI-powered personalization to increase efficiency and boost returns. Generative AI can analyze vast data sets, segment customers more precisely, and deliver real-time tailored content like ad copy or festive offers. Bain reports that retailers using AI are achieving 10%-25% higher return on ad spend (ROAS), making their campaigns more effective even as ad costs spike. This innovation is setting a new standard for profitable, customer-first holiday marketing.
How can retailers fix ad fatigue this holiday season?
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