Published on: September 6, 2024
The era of easily acquiring customers through third-party cookies is over. While this shift has challenged advertisers to find new ways to reach and engage audiences, it also presents an opportunity to build stronger connections and improve customer acquisition.
One approach that many marketers are turning to is contextual advertising. Not only is it cookie-less but it's proven to have greater impact on ad effectiveness. Ads gain a 16% lift in engagement when placed alongside relevant content. This article will explore what contextual advertising is, how it differs from behavioral targeting, and why it's more important than ever in a post-cookie world.
What is Contextual Advertising?
Contextual advertising, also known as contextual targeting, is a form of programmatic advertising that places your ads next to content based on selected keywords and topics relevant to your brand. By aligning your ad with the context of the web pages where it appears, you ensure that it reaches an audience already engaged with related content.
Though contextual targeting has been around for two decades, it’s gaining renewed interest in the post-cookie landscape due to its ability to align with privacy regulations while offering precise audience targeting. The industry is returning to a more context-driven approach — one that Statista predicts will see spending nearly triple by 2030. As privacy concerns reshape digital advertising, contextual advertising is stepping into the spotlight, leveraging relevant content to align ads with the viewer’s real-time searches rather than their browsing history.
How Contextual Advertising Works
Context in advertising depends on two key elements: keywords and topics. Keywords are specific words or phrases directly related to a product or service, whereas topics are broader categories that capture the overall theme. Advertisers leverage these tools to ensure their ads appear on web pages where the content naturally aligns with their offering, allowing them to reach the right audience in the right moment. This is how contextual advertising looks, step-by-step:
- Setting Up Targeting: Advertisers can choose broad topics or specific keywords that align with their product or service.
- Ad Network Scans Pages: The ad network then analyzes web pages, looking at content, language, and structure to find relevant matches. When the keywords and topics line up, the ad is placed on the appropriate page.
- Ad Placement: Advertisers can opt for broad reach (based on topics) or specific reach (based on both keywords and topics). This gives flexibility in how precise the targeting could be.
Contextual Targeting vs Behavioral Targeting
Contextual targeting, often mistaken for behavioral advertising, doesn’t rely on knowing the data of your audience. Instead, contextual advertising depends on the relevancy of a web page’s content for the ad to display on the page to the visitor. In other words, it’s all about the environment fit, not what the web visitor has been searching or viewing in the past.
Type |
Contextual Targeting |
Behavioral Targeting |
Targeting Methods |
Targets users based on content relevance, aligning ads with user intent in the moment |
Targets users based on past behavior, potentially increasing chances of conversion but may feel intrusive |
Cost |
Typically, lower cost as it doesn’t rely on extensive data collection; leverages existing content alignment |
Often requires higher investment in data collection and analysis, but can yield high precision |
Privacy |
Lower risk, as it focuses on page content and first-party data, aligning better with privacy regulations |
Higher risk of privacy issues due to reliance on third-party data and tracking |
Ad Control |
Ads are placed in relevant content environments, enhancing ad relevance without the need for deep data insights |
Ads are placed based on predicted user interest, which can be effective but sometimes misaligned |
Brand Perception |
Generally perceived as non-intrusive since ads are contextually relevant to the content being consumed |
Can be seen as invasive if targeting feels too personal or irrelevant |
Source
Benefits of Contextual Targeting in a Cookie-less World
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Relevancy drives ROI: Contextual ads are 50% more likely to be clicked on than non-contextual ads. Think about the example above. Megan would be much more likely to click on the ad for horse supplements if she sees it amidst related content since the ad isn’t taking away from her browsing experience – it’s enhancing it! Not to mention, the ad doesn’t end up looking spammy because it’s a fitting piece of the web page’s puzzle.
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Cookies don’t hold you back: Contextual advertising operates by selecting relevant topics and keywords, as well as excluding those that don’t align with your goals, ensuring your ads appear on appropriate web pages. This approach eliminates the risks associated with cookie tracking, as contextual targeting uses the content of the website, rather than the visitor’s past behavior, to inform ad placement. This way, concerns about data privacy are effectively addressed.
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Ad dollars go further: Global spending on contextual advertising is projected to surpass $250 billion by the end of the year, but that doesn’t mean advertisers are breaking the bank. Because contextual targeting doesn’t require extensive user data collection, it demands fewer resources than behavioral advertising. This efficiency allows your digital marketing budget to stretch further. Additionally, the relevance of your ads, already aligned with the content, enhances the value of each impression, ensuring your ad dollars are working harder for you.
Make Contextual Advertising Part of Your Marketing Strategy
Contextual advertising is already a proven and powerful strategy, particularly for B2B marketers navigating the post-cookie landscape. By focusing on the content surrounding your ads rather than tracking user behavior, contextual targeting provides a privacy-friendly, cost-effective way to engage with your audience. It aligns with consumer preferences and enhances the relevance and impact of your campaigns. With global spending on contextual advertising continuing to grow, it’s time to reinforce this approach within your marketing strategy.
Partner with Multiview today and leverage our extensive network of +800 reputable association publications that span 30 industries, Multiview offers advertising access to 10 million B2B professionals. Connect with a consultant for more information on exclusive advertising opportunities.
Editor’s Note: This post was originally published in June 2021 and has been updated for accuracy and comprehensiveness.
3 Solutions to Quick Start Your Contextual Advertising Campaign
When you place your ads alongside good-quality industry content, you receive the benefits of safe, compliant delivery, impactful advertising that is relevant and timely, and higher engagement and conversions that results in greater return on investment. Learn more about contextual advertising solutions and how to add these to your marketing plan.
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