Idea in Brief

The Opportunity

Psychological targeting—the practice of influencing people’s behavior through interventions aimed at personality traits—has come of age as a marketing tool, thanks to an explosion in data that provides insight into consumers’ psyches.

The Peril

While psychological targeting can increase sales by helping a firm communicate with customers in a way that resonates, there is also the risk of backlash if they feel they’re being manipulated or if data is being harvested without their consent.

The Right Way

Leading marketers will put ethics front and center, using psychological targeting only when more prosaic approaches are insufficient, ensuring that they’re offering greater value to the customers they target, and being transparent about what they’re doing and why.

Psychological targeting, the practice of influencing behavior through interventions customized to personality traits, burst onto the world stage in 2018, when Cambridge Analytica’s involvement in the 2016 U.S. presidential election made international headlines. The company had allegedly created psychological profiles of millions of Facebook users without their knowledge and then hit them with fearmongering political ads tailored to their psychological vulnerabilities.

A version of this article appeared in the March–April 2023 issue of Harvard Business Review.