The evolution of personalized marketing: What consumers really want in 2025

Remember when “Dear Valued Customer” felt personal? Fast forward to 2025, where consumers scroll past generic marketing like yesterday’s news. Our comprehensive year-over-year analysis reveals not just what consumers tolerate, but what they actively seek in personalized marketing experiences today.

Based on our consumer survey data comparing 2024-2025, we’ve identified significant shifts in what personalization tactics genuinely influence purchasing decisions.

Consumers are more comfortable with social media-based marketing but increasingly reject tactics that feel like surveillance, showing how privacy expectations are changing in unexpected ways. But that’s not all that’s changed in the personalization landscape. Let’s dive in.

Personalization trends in 2025

Our analysis of consumer data from 2024-2025 shows clear preferences in how customers want brands to use their data:

↓ Interest-based discounts remain king (61% of respondents), though this represents a 9% decrease from 2024’s 70%

↓ Product recommendations based on previous purchases influence 38% of consumers, down significantly from 62% last year

↓ Recommendations based on browsing history decreased from 33% to 23%, showing a 10% drop in effectiveness

↑ Location-based offers resonate with 36% of consumers (up 4% from last year’s 32%)

The data reveals a clear shift in consumer preferences toward more subtle forms of personalization that provide immediate value without feeling intrusive.

Consumer response to different personalization tactics

Breaking down the effectiveness of various personalization strategies reveals interesting patterns:

This data shows that while consumers still appreciate personalization that provides clear value (discounts, relevant offers), they’re growing more selective about which types they respond to positively.

The growing influence of social media data

One of the most notable trends is the increased effectiveness of marketing based on social media activity, which jumped from influencing 13% of consumers in 2024 to 21% in 2025 – an 8% increase. This suggests that consumers are becoming more comfortable with brands using their social media behavior to create relevant offers, perhaps reflecting the increasing integration of shopping experiences within social platforms.

Location-based marketing continues to grow

Location-based offers show steady growth, with 36% of consumers now reporting them as influential in their purchase decisions (up from 32%). This 4% increase highlights the continued importance of proximity marketing as mobile device usage remains ubiquitous. Brands that can deliver timely, location-relevant offers without seeming invasive are finding particular success in this area.

Demographic-based marketing finds modest gains

Marketing based on perceived income, age, or demographics saw a modest 3% increase, rising from 15% to 18% of consumers reporting it as influential. This suggests that while broad demographic segmentation remains valuable, it’s most effective when combined with more specific personalization tactics.

The decline of intrusive personalization

Maybe the most telling piece of data is the continued decline in effectiveness of personalization tactics that feel more invasive:

• Personal name usage in ads declined from 15% to 12%
• Product recommendations based on previous purchases saw a dramatic 24% drop
• Ads showing previously browsed items decreased by 10%

These declines indicate that consumers are becoming more discerning about how their data is used, favoring subtler approaches that provide value without feeling like surveillance.

Cross-device retargeting shows modest growth

Retargeting ads across multiple devices and platforms saw a modest increase in effectiveness, rising from 9% to 12%. While still one of the less effective strategies overall, this 3% growth suggests that improved cross-device identification technologies may be making these efforts more relevant and less jarring to consumers.

What this means for marketers

This data presents clear directives for effective consumer engagement in 2025:

1. Focus on value-driven personalization – Especially interest-based discounts, though be aware that even this tactic is showing signs of fatigue
2. Reconsider product recommendation strategies – With a 24% decrease in effectiveness, traditional recommendation engines may need refreshing
3. Leverage location data thoughtfully – Proximity-based offers continue to grow in effectiveness
4. Explore social media signals – The 8% increase here represents one of the few growth areas in personalization
5. Minimize personal data usage in advertising – Using customer names provides minimal benefit and may create privacy concerns
6. Be selective with retargeting – The 10% decrease in browsing-based retargeting suggests consumers may be experiencing “retargeting fatigue”

Finding the personalization sweet spot

The overall picture painted by this year’s data suggests that consumers still value personalization, but they’re becoming more sophisticated in their preferences. The most successful personalization strategies in 2025 will likely be those that:

• Provide clear, immediate value (like relevant discounts)
• Feel contextually appropriate rather than invasive
• Respect consumer boundaries regarding personal data
• Leverage behavior signals without being creepy
• Balance convenience with privacy

As we move forward, brands that can navigate these evolving consumer preferences will find themselves building stronger, more trusting relationships with their customers – the ultimate goal of any personalization strategy.

This research was conducted through a comparative analysis of consumer survey data from 2024-2025, with responses from diverse demographic groups across multiple age categories.