Personalization in Online Advertising: Insights from a Systematic Literature Review

Abstract

This study examines personalization in online advertising through a systematic literature review (SLR) of research published between 2018 and 2021. Personalization has become a key digital marketing strategy, using consumer data such as browsing behavior and purchase history to deliver tailored messages. Findings show that personalized advertising improves engagement, attitudes, and behavioral responses by increasing relevance and perceived value. However, issues of privacy, transparency, and trust remain critical, as excessive targeting often triggers skepticism and resistance. The review also highlights the personalization privacy paradox, where consumers appreciate tailored ads but are concerned about intrusive data practices. Cultural and regulatory contexts further shape consumer acceptance, with stricter environments linked to higher privacy concerns. Overall, while personalization enhances advertising effectiveness, its long term success depends on balancing relevance with ethical data practices and respect for privacy.