Enabling and Understanding Personalization in AI-Generated Advertising Imagery

Abstract

Personalized marketing traditionally matches static products to customers, while dynamic creative optimization focuses mainly on AI-driven text personalization or basic product image modifications. We address this gap by developing and implementing an AI-based framework that generates personalized advertising imagery directly from customer data. We evaluate this framework in a two-stage within-subject study with N=100 participants across four products and three levels of personalization, varied by the amount and specificity of customer data used. Participants rated each image on attitude toward the advertisement, attitude toward the product, and purchase intention. Results show that participants perceive differences across personalization levels and evaluate AI-generated advertising imagery most positively at a moderate level of personalization. High personalization increases perceived personalization, which is positively associated with all three outcome measures, but also increases perceived creepiness, which is negatively associated with the outcomes and dominates the total effect.