How Brazilians respond to personalized advertising
After searching for a product online or walking past a physical store, consumers often receive an offer from that business—or for the same item—on their phone. This is personalized advertising, a strategy that uses behavioral, location, and purchasing data to deliver messages more closely aligned with each person’s interests. Although the format can help drive sales, it also makes many consumers uncomfortable.
A study by research firm Data-Makers, at Valor’s request, found that 62% of respondents say they always, often, or sometimes make a purchase after receiving a personalized ad. At the same time, 51% consider such ads intrusive. Consumers would feel more comfortable if they knew which data was being used and could authorize or refuse their use. Data-Makers CEO Fabrício Fudissaku said the challenge is to make personalization feel like part of a long-term relationship, rather than merely a way to drive a purchase. “Building a relationship of trust with consumers is a competitive advantage for brands.”
Companies across industries are therefore expanding their use of data to make communications more targeted. According to Bruno Campos de Oliveira, cofounder of programmatic media company Adsplay, the more signals companies combine, the better they can identify specific interests and build targeted audiences. More recently, artificial intelligence has expanded that capability by allowing companies to find potential customers who would not otherwise be obvious prospects.
Spotify is among the companies that use audience behavior data to offer targeting options to advertisers. Beyond demographic criteria, campaigns can consider context, listening behavior, purchase intent, and affinity with artists. In Brazil, the platform has 63.5 million monthly active users, up 14% from 2025.
To get more data and build closer relationships with consumers, retailers have also moved into a space previously dominated by media companies. GPA, the owner of Pão de Açúcar, says it has a database of more than 27 million registered customers and uses purchasing information to target campaigns. This operation, which has grown by more than 30% a year, also incorporates AI to optimize campaigns, adapt creative assets, and speed up production for different formats and target audiences.
“We select the ad inventory, build the media plan, and track the results. It is not just a matter of launching the campaign,” said Andrea Pinto, GPA’s marketing and business intelligence director. One example was a Heineken campaign on the retailer’s website that generated a return on investment of 12—or R$12 in sales for every R$1 invested.
“Brands increasingly see retailers as media channels because of their audiences,” said João Werner, CEO of the VTEX Ads Platform division, whose clients include Casas Bahia, Drogaria São Paulo, Pague Menos, and Sephora. The strategy creates an opportunity for retailers themselves, which invest in bringing consumers to their websites and stores but cannot always monetize that traffic. According to Werner, the average conversion rate is about 2% to 3% on a good day. Retail media therefore offers a way to generate revenue from the audience.
In addition to purchasing and browsing data, information from telecommunications carriers expands targeting possibilities, including through geolocation. Once anonymized, the data can be cross-referenced with other information to identify groups with shared characteristics and target them directly. According to Paulo Fernandes, Siprocal’s vice president of sales and advertising for Latin America, the more specific the intended audience, the smaller the group reached tends to be—and the greater the need for technology to process the available signals. In return, this approach can reduce wasted impressions, meaning the number of times an ad is displayed. “We are delivering the message to the right people. One of the main benefits is avoiding wasted impressions.”
Purchasing histories from different stores and credit data can also be used anonymously to identify audiences more likely to make a purchase. According to Serasa Experian Marketing Solutions Director Isabela Torres, hyperpersonalization combines consumers’ interests with their ability and propensity to buy, while also considering their relationship with a particular product category or brand. At Serasa Experian, this work involves more than 400 variables and can reduce campaign costs. Torres cited the example of one company that lowered its media costs by 25% using the model.
Translation: Todd Harkin
