AI has greatly advanced digital advertising, allowing firms to provide social media users with more customized content. Effective customisation and pre-existing brand trust boost engagement, but privacy concerns reduce it, according to a poll of 800 customers in Prayagraj, India. When weighing the advantages of pertinent offers against the dangers of exposing personal data, trust plays a crucial role in determining whether or not customers interact with AI-driven advertisements. The report emphasizes that in order to sustain user engagement in tier-2 markets, businesses must strike a balance between customized marketing, openness, and ethical data practices.