Impact of personalized AI advertising activities on consumer's purchase intentions

The integration of Artificial Intelligence (AI) into digital marketing has transformed how businesses communicate with consumers, offering advanced tools to deliver more personalized, relevant, and timely advertising content. This thesis investigates the impact of personalized AI advertising activities on consumers' purchase intentions, with a focus on the effectiveness, advantages, limitations, and ethical dimensions of AI-powered marketing strategies. The study begins by exploring the historical development and core technologies of AI, followed by a detailed overview of digital marketing evolution, tools, and techniques. Key applications such as chatbots, product recommendation systems, customer segmentation, predictive analytics, and personalized advertising are examined to understand how AI enhances consumer targeting and engagement. Furthermore, the study discusses the rising importance of emerging technologies like voice search, media content generation, and AI-enhanced customer experience. A comparative analysis of personalized and non-personalized advertising is presented, highlighting the benefits and challenges of both approaches. Personalized advertising is evaluated based on its influence on consumer behavior, data collection practices, privacy concerns, and its effectiveness across digital platforms, especially social media. In contrast, non-personalized advertising is analyzed through traditional channels such as television, radio, print, and outdoor media, emphasizing its relevance and limitations in the digital era. To assess the impact of personalized AI advertising on purchase intentions, a quantitative research method was employed. Data was collected through a structured survey and analyzed using statistical tools. The results reveal that personalized advertising, when perceived as relevant and non-intrusive, positively affects consumer engagement and purchase decisions. However, concerns regarding data privacy and ethical use of consumer information remain significant barriers to full acceptance. The research concludes that AI-powered personalized advertising can substantially enhance digital marketing effectiveness by increasing ROI, improving customer satisfaction, and enabling data-driven decision-making. Nonetheless, the success of such strategies depends on maintaining consumer trust, ensuring transparency, and addressing ethical considerations. This thesis contributes to the growing field of AI in marketing by offering both theoretical insights and practical recommendations for businesses aiming to adopt responsible and effective AI-driven advertising approaches.