The belief that effective digital advertising requires tracking users across websites has shaped the online economy for years. However, new research from the University of Kansas suggests artificial intelligence can deliver relevant advertising without collecting users’ personal data or monitoring their online behaviour. The findings indicate that AI-powered contextual advertising can achieve strong marketing results by analysing the content people are viewing rather than building detailed profiles of individual users. As governments and technology companies tighten privacy protections through measures such as Europe’s General Data Protection Regulation, California’s Consumer Privacy Act and the phase-out of third-party cookies, the research offers a privacy-friendly alternative for digital advertising.

Vaibhav Diwanji, assistant professor of journalism and mass communications at the University of Kansas, investigated whether AI could generate meaningful advertising experiences without relying on surveillance. His study, published in the Journal of Promotion Management, explored a fundamental question: Can digital advertising remain effective if it abandons the extensive tracking that has become standard practice? According to Diwanji, the industry’s long-held assumption has been that greater relevance requires collecting more information about users. His findings challenge that belief, demonstrating that relevance can instead come from understanding the immediate context of the content a person is already reading or viewing.

The research consisted of four experiments involving more than 1,000 participants, each interacting with websites displaying AI-generated contextual advertisements. The first study found that animated advertisements attracted more attention than static ones, increasing perceived value, improving attitudes toward the advertised brands and raising purchase intentions. The second study showed that advertisements embedded directly within articles outperformed those placed in sidebars or separate sections. In-article ads were more noticeable without being perceived as intrusive, resulting in stronger engagement and more favourable consumer responses.

The third experiment examined whether advertisements aligned with the surrounding webpage content produced better results. Participants responded more positively when advertisements matched the topic and context of the page, making the messages easier to process and increasing both perceived advertising value and awareness of the surrounding content. The fourth study investigated whether product type influenced these effects. Advertisements for high-involvement products, such as automobiles, health insurance and cruise vacations, generated stronger responses than those for everyday items such as candy or cleaning products. Combined with reduced intrusiveness and stronger contextual relevance, these factors further improved advertising effectiveness.

Taken together, the findings demonstrate that AI can create personalised advertising experiences without identifying or profiling individual users. Rather than relying on browsing histories or behavioural tracking, AI systems interpret a webpage’s structure, semantic meaning and emotional tone to determine which advertisements are most relevant. According to Diwanji, this distinction separates the concepts of personalisation and personal data. The technology does not need to know who a person is to understand what they are interested in at that moment, offering marketers an effective approach that better respects consumer privacy.

The study builds on Diwanji’s broader research into artificial intelligence, advertising and consumer behaviour. As AI becomes increasingly integrated into digital marketing, concerns about online surveillance continue to grow among regulators, businesses and consumers. These findings suggest that AI-driven contextual advertising can provide an alternative that balances commercial effectiveness with stronger privacy protections. Diwanji believes the research demonstrates that surveillance is not a prerequisite for successful digital advertising. Instead, AI can become the primary mechanism for creating relevance in real time by understanding content rather than collecting personal information, potentially reshaping the future of online advertising.

More information: Vaibhav Shwetangbhai Diwanji, The AI Leap in Contextual Advertising: Delivering Ad Relevance in a Privacy-First Era, Journal of Promotion Management. DOI: 10.1080/10496491.2026.2663430

Journal information: Journal of Promotion Management Provided by University of Kansas