According to data, 66% of consumers were uncomfortable with businesses and brands tracking their browser history to serve them tailored ads. We have all encountered contextual targeting, whether we are aware of it or not, at some time in our lives. Don’t believe us? Then answer this question. Have you ever seen a ‘laptop ad’ in the Science and Technology section of a newspaper? Or a ‘jogging pants advertisement’ on a YouTube video on ‘5 jogging tips for beginners.’ If you answered yes, you are aware of contextual advertising!
What is Contextual Advertising?
Contextual advertising displays advertisements on websites based on the content of the page.
This is done by segmenting advertisements based on attributes like keywords or website themes through ad network contextual targeting. Although it was less popular for a short time due to an increase in behavioural targeting, contextual advertising is making a comeback.
Contextual advertising offers a solution that delivers relevant ads to the right audience while respecting their privacy and personalization preferences.
Showing ads on a page that is relevant to the content of the ad, ensures that both marketers and viewers have a consistent and effective ad experience. It is a powerful approach to reach the target audience and promote your product or service.
How does Contextual Advertising Work?
Contextual targeting in advertising uses contextual information to determine which ads to display based on the content being viewed.
Rather than focusing on the viewer, it focuses on the content. Marketers are able to deliver a more relevant message and increase the chances of getting action from their ads by understanding the content and context of the page.
The key difference between contextual targeting and other ad-targeting methods is that contextual targeting uses information about the page, while others use data from cookies.
Cookies track user behavior and provide marketers with data about the audience, including both first-party and third-party information. Contextual data only looks at the content of the website and does not consider the user’s activity.
Benefits of Contextual Advertising
- Affordable Advertising Solution
Behavioural advertising requires a significant amount of data, resources for acquiring and analyzing it, strategies for utilizing it, and personnel to carry out the process. These factors make it difficult and costly for organizations with limited data and resources. In contrast, contextual advertising provides a simple and affordable option for targeting the relevant audience.
- User Privacy is Respected
Contextual advertising does not need sensitive personal information, making it a preferred choice for advertisers who want to ensure their ads are displayed on compliant pages. This method prioritizes user privacy.
- Safe and Appropriate Brand Placement
Behavioural advertising raises concerns about brand safety and suitability, but contextual targeting places the ad on a web page that corresponds to its content. Advertisers choose the themes, subtopics, and keywords, reducing the likelihood of ads appearing on sites where they are unwanted.
- Context is More Significant Than Behavior
Advertisers understand that customization is a powerful marketing tool, making advertisements more relevant to the audience. However, an ad tailored to previous behaviour may not always be relevant to current needs and preferences. Contextual advertising takes into account the present context, rather than past behaviour, to deliver a more relevant ad experience.
- Targeting the Correct Audience Without Bothering
Certain companies’ advertisements follow clients long after they have purchased something. Poor advertising results when advertisers continuously target their customers. Contextual advertising aids in giving relevant advertisements without disturbing the viewer.
Is Contextual Targeting the Answer to the Cookieless World?
Consumers are becoming more aware and there are increasing demands from both the public and governments to limit the collection of personal data by advertisers. This is making cookie-based targeting more difficult, and internet browsers are taking measures to restrict cookies.
To comply with regulations such as GDPR and CCPA, which require greater protection of personal information, there is a growing need for contextual advertising. This type of advertising does not need personal information from consumers, instead, it uses session data like the user’s current webpage to determine their interests and intentions, without relying on personal data.
With limited access to personal data, targeted advertising will become challenging, making contextual targeting an effective solution for maintaining successful digital marketing without compromising privacy.
Despite the market introduction of new contextual advertising solutions, the value of contextual advertising has not lessened. This type of advertising allows you to communicate with customers more meaningfully, and viewers respond positively to relevant content. Because contextual targeting offers a wide range of targeting options, your advertising is seen by the appropriate people at the right time.