What is Contextual Targeting?

Is contextual targeting better for advertising strategy? According to a recent report, the global market for contextual advertising is expected to reach $335.1 billion by 2026.

Many brands whose advertising depends on third-party cookies have been attempting to prepare for life without them. Contextual targeting is thus receiving increased attention, but what attention? Which kind of targeting—contextual or behavioral—is better for your advertising?

What is Contextual Targeting?

Contextual targeting is placing ads on a website based on its content. When done correctly, contextual ads will appear next to the relevant material. Additionally, your target audience will be those who visit the website and read its material. For example, contextual advertisements for computers, smartphones, or headphones can appear on a tech website. 

How Does Contextual Targeting Work?

Contextual advertising is usually set up and placed by brands and advertisers using an ad network or demand-side platform (DSP). Depending on the platform you are using, the specific steps may vary, but this is how they usually work.

1. Keywording Based on Topics

For contextual marketing to be effective, advertising must appear on websites that are relevant to them. You can accomplish this by selecting topics and keywords, and the platform will place your advertisement on websites that meet your requirements. 

Topics are broad categories, like travel, leisure, fashion, etc. By selecting a category, the ad can appear on relevant websites. Subcategories like "SUVs and Trucks" or "Motorcycles" may emerge from more general categories like "Automotive." 

Keywords are specialized subtopics, such as "travel yoga mats" or "trail running shoes," that are related to your particular good or service. Advertisers may use keywords like "travel bags for women" or "travel toiletry bag" if they want to launch an ad campaign with the objective of selling travel accessories. 

For every campaign, it is suggested to use between 5 and 50 keywords, including negative keywords. Negative keywords are terms you want to avoid appearing on unrelated but possibly similar-sounding websites. For example, the phrase "glasses" is similar to "wine glasses" which are a different product, so you shouldn't want advertisements for them around.

2. Time for the platform to analyze the site

When advertisers choose the targeted parameters, the ad platform will search its display network to find the website with the most relevant content. In addition to topics and keywords, the parameters can also be languages or other demographic aspects.

3. The Ad Campaign is Listed on Several Relevant Websites

Ultimately, the display network uses the information to select websites that work with the ad. Once activated, advertisers can see contextual adverts on different websites. Performance is measured similarly to other digital ad formats. For example, monitoring overall return on investment, conversion rates, and cost per click. 

Why Contextual Targeting?

According to a new study by Dentsu Aegis Network and GumGum, contextual targeting appears to be more effective than behavioral targeting. Contextual targeting reduced cost-per-click (CPC) by 48% and cost-per-mille impressions (CPM) by 36% in ads. 

GumGum and SPARK Neuro also looked into how contextual relevance affects customers. They found that contextual advertisement produced 10% more engagement and 2.2 times greater ad memory than the main content. Furthermore, there was a statistically significant rise in the intention to purchase.

We at Ampliffy have direct knowledge of contextual targeting. Our client used contextual advertising to target in-market populations.

When you match an advertisement with the content of a webpage, you may target the right customers at the right moment without risking their privacy. These five factors make contextual targeting popular. 

1. It’s Engaging Your Audience

More action can be generated when brand messaging and content are in line. Users find advertising more organic and integrated when they see appropriate adverts adjacent to the content they are reading, viewing, or listening to. Because people see your advertisements when they are already in the correct frame of mind, at the right place, and at the right time, they may find them more compelling and memorable.

2. Enabling Advertisers to Reach Wide and Specific Audiences

Greater audiences draw in new clients. You may immediately spread a wider net and interact with qualified leads as they move through the sales funnel. Contextual targeting can help you locate difficult-to-reach audiences.

3. It Makes Advertisement Less Intrusive

People get irritated by seeing advertisements so frequently and may eventually tune them out. Intrusive ad is a phenomenon that contextual targeting can avoid. It allows you to reach many individuals at once at a reasonable price. When done correctly, you reach the customers who are most likely to make a purchase, which lowers the total number of wasted impressions.

4. It Adheres to Laws and Guidelines

Contextual targeting targets ads based on content found on a website or app. It is a practical targeting strategy because it avoids the General Data Protection Regulation (GDPR), other privacy laws, and browser-specific restrictions.

Contextual targeting may be applied to almost any programmatic ad channel. It protects user privacy and is frequently less expensive than purchasing audience data from external parties.

5. It Gives Advertisers Total Control

Ad placement is more customizable when contextual targeting is used. You may compile a list of websites where you want your ads to appear. To extract the keywords from every page, use keyword scraping. Select the keywords most relevant to your offering from the list and use them as the foundation of your campaign. 

Your keywords are controlled, and you may easily change them whenever necessary. You can use already-made contextual segments or make your own.