ALGORITHMIC PERSONALIZATION IN DIGITAL MARKETING: A COMPARATIVE ANALYSIS OF THE IMPACT ON CONSUMER ENGAGEMENT AND LOYALTY

Abstract

This paper explores the impact of algorithmic personalization in digital marketing on consumer engagement and loyalty. Using a systematic literature review, in addition to the PRISMA methodological framework, ten relevant studies published in the period 2024–2026 were analyzed, which used various approaches, including quantitative surveys, SEM analyses, experimental research, and conceptual literature reviews. The analyzed works encompass various forms of personalization, including online ads, AI-driven product recommendations, personalized media content, email marketing, and social media content.
The results show that algorithmic personalization significantly increases user engagement and strengthens consumer loyalty. The effects are more powerful when the content matches the user’s identity and values (self-congruity) and when personalized AI recommendations are used. At the same time, excessive personalization or the perception of intrusive communication reduces the effectiveness of strategies, highlighting the need for a balanced approach that respects data privacy and transparency.
Cultural and demographic differences further influence the acceptance of personalization, with younger generations showing greater openness, while older generational groups demanding greater transparency and data protection. The results also show that personalization, which creates relevant and tailored content, deepens the emotional connection with the brand, further strengthening consumer loyalty.
This paper contributes to the understanding of the multidimensional impact of algorithmic personalization and provides guidance for ethical, transparent, and effective application in digital marketing, emphasizing the importance of integrating multiple digital channels and user control over data.