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The future of AI personalization is inclusive, part 3: Driving business growth by being unmistakably authentic with audience representation

August 13, 2025
Two smiling business colleagues having discussion over tablet.

To truly create a resilient brand—one that people will stand by, advocate, and grow to be passionate about—you need strategies for building customer relationships that will withstand the test of time. And with AI enabling inclusive personalization in advertising, now is the perfect time to figure out which strategies will yield meaningful results, and which people are choosing not to buy from your brand and why.

For me, it starts with authenticity and examining the quality of data on audience representation within your post-purchase analytics. This powers your ability to authentically connect. You should have insights into not only who your best-performing customers are, but also your worst—or even better, who isn't even giving your brand a chance by never buying. Brands often optimize for their best 20% of customers who drive 80% of their revenue.

But if you stop there... you’re making a costly mistake.

The other 80% of your audience that may seem to have lackluster performance could be a treasure trove of opportunities. If you’re not understanding why prospects aren’t even giving you a chance or why customers have churned, then you’re likely designing an entire swath of people right out of your consumer decision journey—reinforcing the optimal experience for 20% and disregarding 80%. How can that truly be good for growth?

This 80/20 approach offers significant representation opportunities. And the right strategic fuel for AI personalization can expand your brand’s reach, improve its relevance, earn loyalty, and even resurrect relationships with lost customers.

In part 3 of this guide, I'll walk through how authentic personalized representation rooted in inclusive marketing can unlock real growth, ensuring visibility into your opportunities—and how it builds trust, love, and loyalty with all your audiences. Especially now, when the meaning of inclusivity is often muddled, a data-to-creative approach grounded in authenticity and audience opportunities can set your brand apart, stoke your growth engine, and become a true competitive advantage.

Microsoft Advertising’s inclusive marketing framework

Our key perspective on inclusive marketing started with the development of two studies: The Psychology of Inclusion and the Effects of Advertising: Gen Z and Accelerating Brand Performance Through Trust, Love, and Loyalty. These studies revealed insights into what earns and sustains trust, and builds brand love, along with the significant factors that define a strong customer-brand relationship—the holy grail of future revenue growth: loyalty.

My biggest takeaway that has withstood the test of time is:

High-quality personalization in advertising is inclusive advertising. It makes someone feel: “You’re a brand for someone like me.” Inclusion is a collection of data sets that powers high-quality personalization—it’s truly helpful to a person’s need or want.

Chances are, if people aren’t buying or if they’re churning from your lifecycle marketing program, you’re missing the bar for making them feel, “You’re a brand for someone like me.” In other words, your personalization is missing the mark and isn’t helpful.

In a hallmark research study by Microsoft called Towards Inclusive Software Engineering Through A/B Testing: A Case-Study at Windows, the results challenged the traditional A/B testing model by highlighting how it can unintentionally overlook or even disadvantage underrepresented customer groups.

It argues that when we only optimize for the majority, we risk reinforcing existing inequities in product experiences. This can be true in our advertising, or wherever we use A/B testing methods. For marketers, this means that performance metrics and experimentation strategies must evolve to reflect the full diversity of our audiences in our analytics. Who doesn’t want to earn more loyal customers?

The study advocates for inclusive experimentation practices—like disaggregating data by demographic segments and incorporating fairness metrics—so that we can build products and campaigns that resonate equitably across all communities. This can help a brand grow favorability in audiences that were once thought of as impossible to reach or resonate with.

Another example of this in action is Unilever’s “Dove Real Beauty” campaign. It was designed to expand the definition of beauty celebrate the beauty of all women, regardless of age, size, or ethnicity. Its authentic portrayal of a spectrum of real people resonated deeply with audiences. Many credited the campaign with boosting their self-esteem and confidence by showcasing diverse and relatable models.

Overall, the campaign has been praised for its authenticity and its ability to connect with a wider audience on a deeper level. By representing underserved audiences in their marketing message, Unilever was able to deliver the right message, at the right time, with nuanced context, to a much broader array of people.

And bringing this kind of inclusive representation into AI-driven marketing is essential. Here’s how Paul Longo, GM of AI Ads at Microsoft Advertising, describes the generative AI trends shaping the future of marketing:

"Personalization is evolving from general experiences based on demographics to highly individual interactions based on unique search intent, preferences, and context. And, generative AI-powered solutions can help brands deliver hyper-personalized experiences at scale, leading to significantly higher engagement and conversions."

Without inclusion in personalization, these powerful tools risk amplifying exclusion at scale, leaving entire communities behind even faster.

The inclusive marketing promise starts with a critical question: Who are we unintentionally leaving out?

Are we leaving people out by a product’s feature shortfalls? Are we leaving them out by our advertising not speaking to their needs, or even in the right language? Or are we not discovering the audience we are missing by not conducting inclusive analytics in our marketing operations?

By identifying these gaps and authentically representing excluded product needs or voices—across product development, in data analytics, and/or in creative execution—brands can build deeper, more trusted relationships with their customers and expand their customer base. These are real growth opportunities. Your big bet: Start with inclusive customer analytics.

"I define inclusive marketing as developing authentic relationships using inclusive personalization across products (what you sell), audiences (who you market to), and operations (how you operate)."

— MJ DePalma

Sourcing growth opportunities across your customer journeys starts with inclusive customer analytics in your marketing operations. Journeys can be as advanced and sophisticated as you want them to be, especially if you’re adventurous in how you approach the data and seek out insights.

For example, are you looking at customers in aggregate, as an average of your best-performing customers? Making decisions based on the “average” customer puts you at risk of resonating with no one. The antidote: Parse out your customer data by as many detailed demographics and data insight angles that you can. Find the ways your brand speaks clearly, boldly, and consistently and is in alignment with specific audiences. The goal is to be unmistakably authentic, not universally liked.

Another common misstep is missing ways to engage people that your advertising isn’t reaching. Do you truly understand the different ways men and women navigate the customer decision journey? How about Gen Z compared to Gen X? Or neurodiversity, cultural intelligence… the list goes on and on.

Radical candor and self-examination about marketing analytics is essential to uncover any lack of representation in performance analytics. Identifying and addressing customers’ needs must be central to any marketing efforts. Relying on basic performance analytics isn’t enough. The real work that can drive hidden growth is uncovered when studying how your approach might be accidentally excluding people from your performance analytics and solving for it.

Our advertising analytics team revealed an example of this using Bing consumer search automotive insights. They explored the idea of “representation” in the car buying journey for men versus women, analyzing more than 500,000 search queries and examining query paths with demographic differences.

Then, they took it a step further by challenging the industry standard assumption that a consumer usually takes 26 weeks to purchase a car. Instead, they assessed a 52-week view of data, covering the entire year before purchase. They discovered that shoppers were searching for accessibility-related terms, revealing a significantly overlooked audience segment.

This analysis uncovered bias in the assumed length of the purchase cycle. What was originally believed to be 26 weeks for all customers turned out to be 52 weeks for a high-value segment-revealing how unchecked assumptions can lead to missed opportunities. This insight opened a new growth path for automotive manufacturers and marked a pivotal moment for both our analytics team and the industry. By examining representation through a more detailed lens of the customer decision journey, advertisers can unlock personalization strategies that drive long-term revenue.

While this study was conducted manually, we can now scale opportunities like this much faster using AI to accelerate insight generation, enabling more inclusive, data-driven marketing strategies at speed.

And when advertisers examine representation by approaching customer decision journeys in closer detail, along with using AI to scale, they can uncover personalization opportunities that transform their advertising strategy and drive revenue for the long term.

How authentic representation tackles personalization challenges

Personalization is only as strong as the strategy and data sets behind it. With the right inclusive marketing model, technology, data and processes, we can resolve many personalization challenges...

  • Data collection, management, and privacy: As digital footprints grow, safeguarding personal information has become crucial for regulatory compliance and, most importantly, establishing consumer trust.
  • Cross-channel integration: When it comes to data, connecting the dots across work, life, and play is key to translating behavioral patterns to build actionable strategies and successful ad campaigns.
  • High-quality data: High-quality data is at the heart of success with generative AI in advertising.
    • There are 6 inclusive data sources to consider to bring in rich, high-quality insights to increase the quality of representation in your advertising. Here’s a checklist to consider exploring:
A visual guide outlining six key pillars for creating personalized and inclusive connections through data: Dimensions of Diversity, Inclusive Product Features, Inclusive Metaphors, Inclusive Words, Inclusive Images, and Inclusive Feelings.

How do you measure success?

Measuring the effectiveness of personalization follows a strategic progression through the following key steps, exemplified by Unilever’s approach:

1. Evaluate current data and processes to reveal potential exclusion and identify areas for improvement. Unilever co-founded the Unstereotype Alliance with UN Women in 2017, kicking off a study of 392 brands across 58 countries to uncover opportunities for improving inclusion efforts.

2. Establish benchmarks and target goals. You can't measure growth without knowing what your baseline is and what you're hoping to achieve. Unilever’s study found that inclusive campaigns deliver:

  • A 62% likelihood of being a consumer’s first choice
  • 3.5% higher short-term sales and 16% higher long-term sales
  • 15% higher consumer loyalty

3. Apply new inclusive data sets to your strategy. Unilever integrated findings from the study to refine its marketing approach, embedding equity, diversity, and inclusion across every point of the process. This commitment was reflected in the launch of Act 2 of Unstereotype, which served as the foundation of the 2023 Dove campaign, "The Code."

  • Not only did the campaign film receive more than 4 billion organic impressions, but 94% of women agreed that it demonstrated Dove’s vision of broadening the definition of beauty to be accessible to everyone.

4. Leverage insights to formalize data standards and processes. Unilever continues to champion inclusive research and campaigns, weaving these principles into its long-term marketing strategy.

Representation is the future of AI personalization driving advertising performance: Getting the basics right

The story of personalization and representation isn't new, but it's more important than ever to look at how you can apply them in your marketing basics and how you can add AI-powered solutions to uncover and accelerate growth.

Authentic representation in advertising drives trust by allowing audiences to see themselves in your brand. It also brings authenticity to life, a key component in brand trust. And when your brand is authentic and representative, people are more likely to support you. Research proves that the majority of consumers find personalization appealing or are more likely to make a purchase after a personalized experience, with 72% of people saying they will only engage with personalized messaging.

Customers have expectations about your product promises and advertising message relevancy. To meet and exceed these expectations, prioritize comprehensive representation in your analytics to fuel authenticity, loyalty, and ultimately brand trust—your number one indicator of future revenue growth.

Accomplishing this today is no easy feat, but we’re here as your partner on the journey. Advertising solutions are available in our Microsoft Advertising Platform to help you scale on the right path...

Build better, more personalized ads with generative AI

Copilot in Microsoft Advertising Platform is your generative AI-powered assistant for applying inclusive data sets, helping your teams create high-quality marketing materials efficiently. You can also formalize your new standard of personalization by delivering consistently relevant campaigns with Audience ads across our expansive ecosystem of properties, and continue to apply learnings from Copilot to drive lasting success.

Ads Studio is a creative workspace within Microsoft Advertising that uses AI to help you build, manage, and optimize ad assets—images, videos, and display creatives. You can use Ads Studio to generate AI-generated visuals that create culturally relevant and diverse images and videos using prompts. Its performance insights will help you see what resonates with different groups so you can optimize accordingly. And through its smart recommendations, it will also suggest contextually relevant visuals and copy.

Ads Studio home page

To build high-quality ads, relevant to your campaign, season, and audience, you can:

  • Use Copilot in Microsoft Advertising Platform’s asset generation capabilities to quickly adjust, optimize, and create compelling creative assets.
  • Improve campaign performance with asset-level insights.
  • Optimize your campaigns with informed creative asset decisions. Know how your assets are performing, which assets perform well and (equally important) which don’t.
  • Organize your assets in one place and find what you’re looking for with AI-powered search that understands what’s depicted without you having to manually tag assets. Browse assets on your website, from stock images, or from your existing asset library.

The future leaders of AI personalization in advertising are the brands who ace becoming conversational and agentic while delivering the highest quality ad experience by being inclusive, representative, and authentic. You can lead the way and find your path of success in these rapidly transformative times by challenging the way things have always been done.

I believe these strategies and tools can accelerate your impact, so connect with our team today to see how you can start embracing these solutions to scale.

Authors

  • MJ DePalma

    HEAD OF MARKETING WITH PURPOSE, MICROSOFT ADVERTISING

    MJ DePalma