Personalization Comprises 14% of the Marketing Budget, says Report


    A new report from Gartner has revealed that marketers will redefine personalization, influencer marketing, and emotion-based strategies.

    The report titled “Predicts 2020: Marketers, They’re Just Not That Into You” predicts that influencer marketing will witness a change due to the trust that consumers, institutions, and brands prefer to place in known entities. The budgets for influencer marketing will fall by 33% as consumers will continue to lose trust in brands they don’t personally know by 2023, the report found. The research firm advises marketers to be selective about influencers and select the ones that represent the brand’s value.

    As a result of the lack of ROI, 80% of marketers will abandon personalization efforts by 2025. Personalization comprises 14% of the marketing budget, yet more than one in four marketers cite technology as a key obstacle to personalization. Artificial Emotional Intelligence (AEI), which is driven by audio, computer vision, sensors and phonetic/text analysis, will have a significant impact on users’ reactions to products and services.

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    Amazon and Google will incorporate AEI-detected emotions in their advertising technologies by 2023. The report states that the personalization trend could take a new direction in case of a consumer-indicated personalization filter.  The costs to acquire and manage all the personalization data are replaced mainly by consumers specifying what they are interested in buying thus pre-qualifying them for those pitches and potentially raising the ROI.

    Marketers will see a “flight to quality” in personalization efforts, where the focus is put on personalization investment that has tangible results. It will result in an orientation toward segment-based personalization instead of the goal of one-to-one, as marketers address the issues of measurability and scalability.

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