The influence of digital ad personalization on consumer perception: A study of an online retailer in Lagos, Nigeria
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Background of the study
Digital ad personalization has revolutionized the way online retailers interact with consumers, offering tailored content that resonates with individual preferences. This study investigates the influence of personalized digital advertisements on consumer perception within an online retail environment in Lagos, Nigeria. Digital ad personalization involves the use of data analytics and machine learning algorithms to deliver targeted advertisements that are relevant to the consumer’s interests (Oluwaseun, 2023). In Lagos—a hub for e-commerce innovation—this practice is increasingly being adopted by retailers seeking to differentiate themselves in a competitive market. However, personalization efforts are not without controversy; issues such as data privacy, algorithmic bias, and consumer skepticism persist (Afolabi, 2024). Recent literature emphasizes that while personalized ads can enhance consumer engagement and perceived relevance, they may also trigger concerns about intrusive marketing practices (Chukwu, 2025). This study will explore how these personalized ad strategies shape consumer attitudes, purchase intentions, and overall brand perception, while also addressing the broader implications for consumer trust and loyalty in the digital retail space (Babatunde, 2023).
Statement of the problem
Despite the promising benefits of digital ad personalization, online retailers in Lagos face a paradoxical challenge. While targeted ads are designed to improve consumer engagement and drive sales, there remains a significant portion of consumers who perceive these personalized ads as invasive and intrusive. This ambivalence can lead to a diminished consumer perception of the brand, thereby affecting purchase decisions and overall trust in the online retailer. Furthermore, the lack of clear guidelines on balancing personalization with privacy has resulted in inconsistent ad experiences. The study addresses this problem by examining the interplay between personalized ad content and consumer perception, identifying the key factors that either enhance or detract from the overall shopping experience. The insights gained from this research are expected to inform digital advertising practices that reconcile personalization with ethical consumer engagement (Chukwu, 2025; Babatunde, 2023).
Objectives of the Study
To assess the impact of personalized digital ads on consumer perception.
To identify the factors influencing consumer acceptance or rejection of personalized ads.
To propose recommendations for ethical and effective ad personalization strategies.
Research Questions
How do personalized digital ads influence consumer perception in Lagos?
What factors contribute to the acceptance or rejection of these ads?
How can online retailers optimize ad personalization while maintaining consumer trust?
Significance of the study
This study is significant as it sheds light on the nuanced effects of digital ad personalization on consumer behavior within a major online retail market in Lagos. The findings will help online retailers refine their advertising strategies, ensuring that personalized content is both engaging and respectful of consumer privacy. The insights generated contribute to the broader field of digital marketing and consumer psychology, offering a balanced view of personalization practices (Oluwaseun, 2023).
Scope and limitations of the study
The study is limited to analyzing digital ad personalization within an online retail setting in Lagos, Nigeria, and does not cover other forms of digital advertising or markets outside this region.
Definitions of terms
Digital Ad Personalization: The process of tailoring online advertisements to match individual consumer preferences using data analytics.
Consumer Perception: The attitudes and opinions that consumers hold regarding a brand or its marketing efforts.
Online Retailer: A business that sells goods or services over the internet.
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