Do you think you choose for yourself? How personalised marketing influences your choices

Personalised marketing has become a powerful tool in today's digital economy. However, how far can personalisation go? 

The appeal of personalised marketing 

Since the beginning of his studies, Van Heusden has been interested in the intersection of law and economics, with a special focus on marketing and consumer law. "Personalised marketing stood out to me as a technique widely embraced by the marketing world, while the legal field initially had no response to it. A revolutionary method emerged to reach consumers without clear rules to protect their autonomy, equality, and well-being", he explains. Although legal frameworks have developed recently, technology is so dynamic that regulation constantly seems to lag behind. "When I started my PhD research, legal instruments existed, but they were not designed to address the unprecedented dynamism and complexity of personalised marketing." 

How does personalised marketing work? 

The most visible example of personalised marketing is online advertising. "Ads are increasingly tailored to your personal information and online behaviour. Who you are, what you search for, what you are interested in, what you click on, how long you look at something - everything is analysed to show you exactly the ad that will push you toward making a purchase", says Van Heusden. Beyond ads, personalised pricing and contracts are also gaining ground. Companies adjust product prices based on your purchasing behaviour, location, or even your device data. As an example, Van Heusden mentions Uber, which increases ride prices when a smartphone's battery is nearly empty. "This exploits your situational vulnerability," he explains. 

The dark side of personalisation 

Despite the benefits of personalised marketing, it also has a downside. "Personalised marketing does not just respond to your preferences - it also shapes them," warns Van Heusden. Consumers are subtly steered in a particular direction through highly sophisticated techniques, sometimes in ways that are not in their best interest. "This can lead to higher prices, less freedom of choice, and a shift of power from consumers to companies." Research by the European Commission shows that consumers often underestimate how strongly personalisation techniques influence their behaviour. "They believe they are making rational choices, while subtle personalisation techniques are quietly steering their preferences and decisions," says Van Heusden. 

The role of AI 

Artificial intelligence (AI) plays a key role in personalised marketing. "AI processes enormous amounts of data, from search history to interaction patterns, to optimise personalisation. AI adjusts ads and prices in real time, tests which messages are most effective, and then learns from consumer reactions to predict which strategies will drive someone to purchase. This makes marketing not only more targeted but also more dynamic, leading to an increasing level of influence over consumer choices - often without them even realising it," Van Heusden explains. 

The European Union is a global leader in digital regulation, but marketing techniques are evolving rapidly. The biggest challenge lies in the subtlety of influence. "The more invisible the influence, the harder it is to regulate legally, and that is precisely the Achilles of consumer law," says Van Heusden. 

Opting out of personalised marketing 

According to Van Heusden, the ethical boundary of personalised marketing is crossed when consumers can no longer make autonomous decisions. "When marketing not only responds to preferences but actively shapes them and disadvantages vulnerable groups, the balance between commercial effectiveness and consumer protection is disrupted." However, Van Heusden believes there is a solution. He explains that one of the simplest and most effective measures is a genuine opt-out option: "Currently, opting out of personalisation is often cumbersome and time-consuming, or consumers are forced to choose between paying a fee or accepting limited functionality, making the choice essentially illusory. A real opt-out gives consumers back control over their own data and strengthens their autonomy in a market where it is currently under severe pressure. Personalisation should be an option, but never the only way." 

The future of personalised marketing 

Personalised marketing has a significant impact on consumer behaviour. With his dissertation, Van Heusden hopes to contribute to better consumer policy. "Consumers are the backbone of the economy, and strong consumer rights are essential for sustainable economic growth. My law and economics analysis shows that personalised marketing can provide great economic benefits, but only within a solid legal framework. Without clear safeguards, the risk of personalisation turning into manipulation looms large. My goal is to offer a balanced perspective: allowing innovation and consumer protection to go hand in hand." 

The views and opinions expressed by Van Heusden in this article are personal and do not necessarily represent those of the European Commission or other EU institutions.