THE «DARK SIDE» OF PERSONALIZATION: WHEN COLLECTING DATA FOR RETARGETING CAUSES IRRITATION AND REJECTION OF THE BRAND

Abstract

Purpose of the study. To analyze the paradox of modern digital marketing, where targeted advertising tools such as retargeting, while demonstrating high short-term effectiveness, lead to brand rejection when used incorrectly. The study aims to identify the mechanism by which personalized advertising transforms from an engagement tool to an irritant, as well as to formulate principles for ethical and strategically effective retargeting. Materials and Methods. The study is based on a theoretical analysis of the evolution of marketing communications from mass to hyper-personalized, using comparative-historical and structural methods. To systematize these changes, a comparative analysis of key marketing paradigms is used based on the following criteria: purpose, channels, targeting, measurability, perception, and risk. The concepts of the «psychological limit» of consumer tolerance and the self-perpetuating «irritation loop» are introduced and conceptualized. The analysis is supported by references to research in consumer behavioral psychology and marketing ethics. Results. The study reveals the central contradiction of hyper-personalization: the ambivalence of consumer perception, oscillating between evaluations of «caring» and «harassment,» depending on the intensity and appropriateness of the impact. It is established that exceeding an individual’s «psychological limit» activates reactance, leading to a loss of trust. A destructive «irritation loop» is described, a vicious cycle in which increased retargeting to compensate for declining effectiveness leads to further irritation and a deepening loyalty crisis. The reputational risks associated with violating ethical standards of digital interaction are highlighted. Conclusion. It has been proven that inappropriate use of retargeting, focused solely on short-term metrics, leads to long-term losses of loyalty. Key principles of ethical and effective retargeting are formulated as a solution: maintaining a «golden mean» in frequency, ensuring transparency and user control, creating valuable and variable content, channel diversification, and deep audience segmentation. Brands that possess data and learn to respect consumers’ psychological comfort and privacy, preventing the triggering of a destructive «irritation loop,» will gain a sustainable competitive advantage.