Generative AI in personalised advertising: Impacts on consumer engagement

Abstract
Purpose: Generative Artificial Intelligence (GenAI) is fundamentally transforming the advertising landscape, enabling
unprecedented levels of personalisation that dynamically tailor ad content, format, and timing to individual consumers. This
study investigates the impact of GenAI-powered personalised advertising on consumer engagement, measuring effects on
attention, click-through behaviour, purchase intent, and brand recall. A structured survey was administered to 350 consumers
across major Indian metropolitan cities. Descriptive statistics, simple percentage analysis, Chi-Square Test of Association,
Pearson Correlation Analysis, Exploratory Factor Analysis, and Multiple Regression Analysis were employed to examine
relationships between GenAI advertising exposure, consumer awareness, engagement behaviour and privacy concern levels.
The study found that 67 per cent of respondents are aware of GenAI-driven advertising. However, 60 per cent of respondents
expressed high or very high concern about data privacy in AI advertising contexts.
Keywords: Generative AI, personalised advertising, consumer engagement, data privacy, digital marketing