The ROI of Relevance: How Personalization Offers a Key to Combat Rising Prices 

Consumers are watching prices more closely than ever. According to new research from Magna Media Trials and Zeta, more than 80% of people across all income levels say price now plays a bigger role in what they buy than it did two years ago. That shift spans everything from groceries and personal care to alcohol and tech.

This intense focus on cost means marketers must work harder to earn attention and drive sales. But the data also shows that relevant, data-driven personalization can help.

The research measured how different types of personalized ad messages influence purchase behavior across various product categories. The results show that when brands create relevant, individualized experiences, people are more likely to choose that brand and more willing to pay more for it.

Price Sensitivity Reaches Every Corner of the Market

Compared to two years ago, 58% of consumers say price matters more for groceries, and 52% for travel and technology purchases. Categories once considered less price-sensitive—including health and wellness, household essentials, and automotive—also show significant increases in price consideration.

This shift creates a critical challenge for brands: How do you maintain market share and pricing power when consumers scrutinize every purchase decision?

Personalization Feels More Acceptable Now, But It Has Limits

Consumers are more open to personalization than they were five years ago. Our research found that 97% of people now expect some form of personalization from ads they see.

Driving this acceptance is the general feeling that brands are now able to deliver more relevant and useful experiences. Consumers also cite improved transparency and better control over data and privacy settings as key factors in their growing comfort.

However, even with broader acceptance, most consumers still feel like too much personalization can be “creepy.” When brands over-personalize, people become less interested in learning about the brand and may trust it less.

Similarly, when brands miss the mark and deliver irrelevant experiences, it can damage brand reputation. In fact, the study found that a message with incorrect information reduced people’s likelihood of choosing the brand over a competitor by 43% compared to generic content. In other words, if you’re going to personalize, do it well—or don’t do it at all.

Demographic Differences Drive Strategy

Younger generations show significantly higher acceptance of data usage for personalization. Millennials lead in comfort with all personalization types, followed by Gen X, Adult Gen Z, and Baby Boomers. For example, 69% of Millennials find it appropriate for brands to use previous purchase data for personalization, compared to just 45% of Baby Boomers.

This generational divide requires marketers to adjust their personalization strategies based on target demographics. Campaigns targeting younger consumers can leverage more sophisticated data points, while those aimed at older demographics should be more mindful of data sensitivity and transparency.

Personalization Lifts Purchase Intent and Spending (If Done Well)

Our research tested more than 220 brand messages across four product categories: grocery, wine, beer, and wearable tech. Each message leveraged different personalization data, including transactional history, browsing behavior, life stage, and psychological traits. The control messages weren’t personalized at all.

The results showed a clear pattern. Personalization made people 7% more likely to choose a specific brand. For people who were actively in-market, that number jumped to 26%. Personalization also changed what people were willing to pay. Consumers reported that they’d pay 1.8% more for products like wine and groceries after seeing personalized messages. For wearable tech, the lift was 2.7%, and beer showed a 0.9% increase.

These numbers add up fast. The study projected that a 1.8% lift in price tolerance for a $3.1 billion food brand could lead to $55 million in new revenue. As such, a +1.2% bump for a $59.8 billion beer brand could mean an increase of $717 million.

Some Types of Data Work Better Than Others

Not all personalization delivers equal results. The most effective strategies connect where consumers are in their lives with what they buy.

There are four primary data types marketers can use to drive purchase decisions:

• Life stage: Messaging that acknowledges major transitions (new families, recent marriages, career changes) resonates most strongly.
• Transactional purchases: Leveraging actual purchase behavior and category preferences creates highly relevant experiences.
• Online behavior: Recent browsing and search activity provides immediate relevance signals.
• Psychology: Understanding interests, attitudes, and mindset enables deeper connection.

Among these, life stage and transaction history were the most reliable drivers of purchase decisions. Layering data types produces stronger results. A message that combines purchase behavior with life stage feels grounded. A message based only on vague interests or recent clicks feels weaker.

Format and Device Matter Too

The device where someone sees an ad also influences what kind of personalization works best. On mobile, people expect reminders or prompts. On desktop, they look for ads that connect to their searches. On streaming TV, they’re open to discovering new products or brands.

This means personalization can’t be copy-pasted across channels. A message that works in an Instagram ad might fall flat in a YouTube pre-roll. Brands need to consider both the message and where it shows up to be successful.

Key Takeaways for Marketers

When price matters, personalization pays

In today’s market, brands that personalize their message can not only meet consumer expectations but also curb price sensitivity.

Personalization should be multi-dimensional

Use a layered approach built on where consumers are in life and what they buy.

Get it right or don’t do it

Irrelevant or overly personal ads damage trust and brand perception.

Building Sustainable Competitive Advantage

In an environment where price sensitivity affects every industry and income level, personalization offers one of the few paths to maintaining pricing power and market share. The brands that succeed will be those that invest in sophisticated personalization capabilities while carefully avoiding the pitfalls that damage consumer trust.

The research shows that personalization is a fundamental requirement for remaining competitive. Consumers who experience relevant, well-executed personalization develop stronger brand relationships and become less price-sensitive over time.

The question isn’t whether to personalize, but how to do it intelligently, respectfully, and profitably. Brands that master this balance will find themselves well-positioned to thrive even as price pressure continues to intensify across all markets.