With the loss of third-party cookies, the rise of privacy regulation, and reliance on first-party data collection, marketers are back to the drawing board. One of the few tools left behind in their toolbox is contextual advertising.
Contextual advertising targets users by displaying relevant ads on web pages based on the content of those pages.
For example, a running shoe brand may run an ad in an article about marathon running. This type of ad-buying generally uses little to no user data, so marketers can reach their target audience without tracking individual browser history.
While contextual advertising is on the rise, it’s not new. Advertisers have been using this method for decades. Originally, it was used to purchase TV or magazine ads, and now it’s coming full circle on the internet.
Today’s Contextual Advertising Uses AI and Learning Algorithms
Companies that specialize in contextual advertising are using AI and deep learning algorithms to analyze content and determine the best ads to serve. This helps enhance the customer experience, boosts engagement, and improves conversion rates.
By 2023, contextual advertising is projected to reach a global market value of $562.1 billion.
However, this advertising strategy isn’t without controversy. Some trade groups representing publishers in the U.S. and U.K. have raised concerns that ad verification and brand safety vendors could be gathering data from their websites and selling it as contextual advertising data to clients. As a result, publishers are pushing to label their own content for advertising purposes versus having it identified for them.
Personalized Marketing Is Essential
Overall, contextual advertising is another method for marketers looking to target their audience without compromising privacy, but it shouldn’t be the only way they advertise. Since COVID-19, personalized advertising is more important than ever — 71% of consumers expect companies to deliver personalized interactions, and 76% get frustrated when this doesn’t happen.
One way marketers and businesses can do this is through personalized direct mail. To learn more about the benefits of direct mail, read about the 3 Reasons Why Direct Mail Is Making a Comeback.
Sources
https://www.marketingbrew.com/stories/2023/06/02/why-is-contextual-advertising-on-the-rise
