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Advertising Technology, or as it is shortly known as Adtech is an inclusive term which offers various tools, technologies, software to different brands and advertisers to utilize it to:
- Plan and optimize advertising campaigns.
- Reach the targeted audiences.
- Deliver digital advertising campaigns in the right frame of mind of the consumers.
- Analyze the result of digital ad campaigns.
- Utilize the technology for better use of advertising budgets.
The evolution of the ad serving techniques has been very advantageous to the advertisers who advertise their goods and services online. Contextual targeting allows brand owners to display their ads on relevant content without having to put their resources into tracking users’ data.
For marketers, it has boosted their options of conveying advertisements to the right audience, without the need of knowing or studying their online behavior.
The contextual form of advertising is getting further more effective with the use of AI-powered targeting tools. So, yes it won’t be wrong to say that contextual targeting is a smart way to advertise online.
The same tech that applies to the desktop contextual targeting are also used in the mobile-app world, but with a few additional factors in the role. Just like the concept of desktop contextual advertising, an ad for a banking offer would definitely perform well on a stock tracker app on mobile devices. Mobile contextual factors like battery level, OS version and available device storage provide additional targeting efficiencies. In the programmatic world, these factors are amplified through the continued in-app bidding on mobile.
Combining mobile contextual advertising with programmatic advertising is the great use of the two strategies. While first-party data will constantly enjoy some upper hand over different techniques, it may not be enough to accomplish your user engagement goals. In that scenario, contextual targeting can assist advertisers reach target audiences based on factors like app category and device information. Contextual advertising in programmatic targeting makes that process very convenient, allowing marketers to quickly adjust a campaign in response to its performance.
Apart from all the previous issues, context is king today and it is making a comeback, here are a some of its key advantages:
- New and greater advertising opportunities — innovative AI tools, such as computer vision, now make it convenient to understand the context of what users see on a website, which creates a variety of new advertising options and content formats on web pages that highlight a brand, product or topic through an image or video rather than text.
- Less thought work — With contextual advertising, you can convey marketing messages to users when you know they’re in a specific situation or state of mind, therefore taking much of the thought process out of advertising. This method gives brands an opportunity to engage with, receptive and specific target groups– ultimately leading to better accuracy and a greater return on investment.
- No ad fatigue — With the help of advanced AI-powered technologies, advertisers now have many convenient and effective ways to understand whether or not to put an advertisement next to a specific piece of content. This improves its accuracy to the users and therefore has a good effect on ad fatigue as the user sees advertising as a suitable place for them.
- Relevancy — As a marketer, you have the chance to enhance the ad experience with relevant and personalized ad creative and target users, who have become annoyed with non-relevant ad creatives, not based on the context of the site they are engaging with.
With the ad tech industry moving on the path to a cookieless world, it’s time to adapt and ensure consumers can provide digitally savvy, privacy-driven end-users with reasonable control over their data. As contextual advertising has proven effective, many marketers seek it as an excellent alternative to third-party cookies.
Various industries have successfully adapted to key defining moments and have gained many profitable results. For instance, the creation of the internet created global opportunities for travel agencies, and those who embraced the change evolved from local or national companies into international businesses. Those who opposed the difference, and didn’t put their customers first, probably don’t exist today. Consumers demand privacy in the same way they want to book their holidays online — if this is granted, new, exciting opportunities will arise for everyone.
Few things break the flow of a narrative as much a non-context insert. The same holds good in respect to advertising.
Various case studies show that even the best of advertisements, which have a feel-good factor about them, do not do well if they are not fitted into the context. A report from the University of Oxford supports this wherein it was observed that cheerful ads when inserted in between a gloomy part of the video do not create much impact.
In many cases, in-video ads which are not relevant to the video being watched, tend to put off the viewer and might not create the desired impact. Whereas, contextual advertising can help to better connect with the viewer and communicate the message more effectively.
In contextual advertising, ads related to the content being seen or read are placed to ensure better connections with the audience. Video ads can have more impact through in-video contextual advertising where in-video ads are placed relevant to the content being played out in the video.
This ensures that the viewer finds the advertisement to be closely related to what is being seen, and therefore, would be more interested in knowing about the product.
Contextual targeting is a demanded tool for companies that have helped them in targeting their segmented audience group at the right time and place. Some of the advantages of contextual ads that caused the new rise of contextual advertising are:
- Unlike behavioral advertising, which requires users’ personal information, contextual targeting relies on less personal information. This makes it a secure and desirable option for most businesses that must adhere to privacy requirements such as GDPR.
- Contextual advertising is less disruptive than typical banner ads since they are particularly targeted at an audience who is interested in the content of the page/video.
- Unlike traditional advertising strategies, contextual advertising is cost-effective and does not hurt the advertisers’ pockets.
- Contextual ad targeting is the most effective way to increase product sales by achieving its primary goal of reaching the targeted demographic. This occurs as a result of a good study on keywords, keyword phrases, and the application of AI technology.
- When people visiting the websites see ads that are relevant to the content, the product’s brand recognition increases. This in turn leads to larger audience engagement and improves the company’s income through increasing sales.
Now comes the real deal! Here we have explained the working of the contextual advertising and the methodology behind it. It generally involves the process contextual targeting through a demand-site platform that will place your ads on platforms which matches the parameter. This is how the process works:
1st Step: Choose the parameters for Contextual Advertising
Keyword selection is an important step in this process. You need to target keywords, as well as topics and phrases to the Display Network ad groups. At first you can start broad like ‘Autos & Vehicles’ and then can get more specific like ‘Trucks & SUVs’, or ‘Commercial Vehicles’, etc.
This is done to precise the targeting within you topic and sub-topics. As per the research done by Google, each campaign should use 5-50 keywords, including negative keywords to help the network match your ad to website content.
2nd Step: Google analyzes the pages
Once you place an order, Google analyzes the pages to the web page which matches your ad with the most relevant content. In case if you target keywords in the same ad group, your content is displayed first when Google selects where to show your ads.
3rd Step: Ad placement is done contextually
After the Google analyzes your ad, the display network will find placement of your ad contextually. For example, when keywords as selected by you match the central theme of a website, or concept of that site, your ad is then showed up on that website.
Contextual advertising is not a new concept in the advertising industry. But, it was less focused in the previous years with behavioral targeting getting all the attention of advertisers. It allows you to match the content of the webpage to that of the ad. This focuses on providing a unified experience for the user by emphasizing screen content rather than individual individuals.
It displays advertisements on a website based on its content rather than the user’s data and aligns the website’s content with a certain group of individuals. This targeting takes the category or keywords of the page that the visitor is seeing into account.
The Ad Server then shows advertisements that are most relevant to the content of the site. Users respond better to such adverts in this context since the material is tailored to their present requirements.
With Google, Apple, and many other large businesses taking drastic steps to block third-party cookies as users’ privacy concerns grow, contextual advertising has once again taken center stage.