Contextual targeting is the new frontier of advertising. Contextual advertising means targeting ads to people based on what they are reading on a website. With the latest regulations and concerns about behavioral tracking online (for example with third-party cookies), there is a huge demand for personalized marketing strategies, hence, contextual advertising. With the advances in artificial intelligence and machine learning, you can now learn what customers are looking at on a publisher’s page. In this guide, we review the ins and outs of contextual advertising.

Contextual Advertising (Infographic) What Should Publishers Know?

Contextual targeting

How Does Contextual Advertising Work in CodeFuel?

At CodeFuel, we bring the power of context to maximize the impact of campaigns and publisher’s yield by delivering intent-based ads to high-intent customers. 

Our Intent Discovery Platform (IDP) generates dynamic contextual ads that allow serving the right ads at the right time on every site. 

Some benefits of CodeFuel’s contextual advertising: 

Publishers get more revenues by accessing millions of ads. 

  1. Visitors enjoy an enhanced user experience by discovering ads related to the content they are reading. 
  2. The relevance of the ads to the topics presented on the page increases the likelihood of conversion. 

Provides an infinite search demand

CodeFuel gives publishers access to a wide demand of advertisers in an array of verticals. The IDP optimization layer enables the ads best suited for the audience. 

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Leverages Artificial Intelligence 

The machine learning process generates the perfect ad unit that at the same time offers publishers high yield, and offers a great experience for users. 

Use cases

  • A user visiting a cooking blog and reading a recipe can get ads related to the ingredients or cooking ware.
  • A person looking at the best winter hikes recommendation article will get ads related to hiking boots and gear.

Contextual advertising involves targeting ads through an ad server that places the advertiser’s ad on pages that meet the desired criteria. There are a few steps on this process: 

1. Contextual Targeting is built around keywords

The platform needs to know what the campaign is about before placing the ads on relevant web pages. To do that, the system relies on the keywords associated with the webpage. If the topics the advertiser chose match the theme of the website, the ad can show on the site. For example, an advertiser can select vacation rentals, then use related keywords like beachfront, number of rooms, location, and other subtopics.  

At CodeFuel we add a new layer of relevance by matching visitor intent as a factor for displaying the relevant ads on the page. 

2. Contextual Advertising and First-Party Data

As the timeline for third-party cookie phase-out in Chrome is approaching, organizations are searching for cookie-less solutions that are equally effective as current methods. 

Any approach that wants to be effective in the near future needs to tap into first-party data to understand customers. Publishers, for example, need to strengthen their first-party data collection in order to sustain their revenue. This means ensuring the maximum number of their audience have opted-in to receive targeted ads, so they can leverage the ad inventory while keeping privacy compliance. 

CodeFuel’s Intent Discovery Platform enables publishers to get new revenues and optimize ad campaigns.
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The Types of Contextual Advertising

Contextual ads can take many shapes. They can be text ads, banner-like ad units, or videos. 

Contextual text ads

These are the ads you commonly see when you type keywords on a search box or search engine, but they can also appear on a website or a blog. Most search engines will require text ads to be labeled as such to prevent misleading users. 

Contextual display advertising

This type of contextual ad can include images and text and is usually displayed on websites relevant to the content. 

Contextual display ads

In-game contextual advertising

Contextual ads are not exclusive to websites, blogs, and search engines. Video games also offer opportunities for monetization by running ads related to the game context. With games, it is important to preserve the user experience and don’t let the ad disrupt it. 

In-game advertising allows brands to reach massive audiences. Considering the millions of users that play computer and mobile games, the possibilities for monetization are really attractive. In the UK alone, there are over 37 million gamers

Here’s an example of a billboard in the game Battlefield 2124 as an example of dynamic in-game advertising. 

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In-game advertising can also be static, for instance as the advertisements mimicking real boards in the FIFA games.

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In-video contextual advertising

There are also opportunities to display advertisements in videos. The advantage of in-video contextual advertising is that it doesn’t disturb the experience, since the ads are related to the content seen. The viewer finds the advert closely related to what they are watching, and as such it generates more interest in the product. Contextual ads prevent the harmful effects of interrupting ads that may turn off the viewers. 

Artificial intelligence plays a key role in enabling in-video ads. For example, advertisers can place ads according to what is happening in the video. AI recognizes scenes, understands facial expressions, and other computer vision applications like logo and image recognition enable it to place the ad where it will most likely blend with the content.

 

Native contextual advertising

Native advertising is a form of contextual advertising where the ads or sponsored content appear like the native content of a website. Native advertising blends seamlessly with the content, although good practices require you to add a “sponsored” label.

Native advertising is not-intrusive: this ad format integrates an advertisement into the editorial style or content.   

There are two main types of native advertising

 

  • Infeed/ In Content: these ads are embedded into content pieces or social feeds. The ads blend with the content and create a non-intrusive user experience. 
  • Content Recommendation Ads: these are displayed as recommended content along with editorial content. For instance, at the end of an article or along the side. 

An example of native advertising could be the Spotify campaign for Netflix’s hit series Stranger Things. For the premiere of the season, Spotify users could enter the “Stranger Things” input in the platform and get a playlist assigned according to a character from the show. 

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Contextual Advertising on Mobile

With people using their phones for almost everything, targeted advertising includes in-app and in-mobile advertising. As a result of mobile popularity, the in-app advertising market is growing steadily, and it is expected to reach $339 million by 2023

 

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A contextual ad system scans the mobile site and the application for relevant keywords and serves the ads that go better with it. 

In-app contextual advertising offers many benefits:  

  • Provide a better experience: by reducing the intrusiveness of ads. 
  • Protect user privacy: by targeting users without collecting data. 
  • Increase engagement: generate higher results because users see ads related to the app. 

The Difference Between Contextual and Behavioral Advertising

While they are easily confused, contextual and behavioral advertising are not the same. Behavioral targeting is a method that uses web user information to enhance ad campaigns. 

This technique gathers data about the customer’s online searching and browsing behavior to deliver targeted marketing activities, including ads. The targeting is based on the user’s past behavior. For instance, a user reads an article about vacation spots and now they are on a fashion site, they may see an ad related to vacation spots. 

Contextual targeting, on the other hand, involves displaying ads that are related to the content of a site based on relevant keywords. This technique focuses on the environment in which the users browse and shop. Contextual advertising involves assigning relevance to content, keywords, images, and topics. For instance, a user that visits a traveling website will see ads for hotels and flights. 

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Why is Contextual Advertising Important?

Online advertising in a post-cookie market needs to deliver value for the advertiser, the publisher, and the consumer. Contextual advertising provides benefits for everyone. 

Benefits for Consumers

Contextual advertising addresses the privacy concerns of consumers that don’t want their data tracked while at the same time giving them the relevant content they want. 

 

Contextual ads analyze the content being consumed, and therefore, doesn’t need a third-party cookie. The personalization is based on the contextual data from a webpage so consumers don’t usually need to opt-in to share their data. 

Benefits for Advertisers

Advertisers benefit from contextual advertising because they can continue engaging customers without having to rely on third-party cookies. It allows them to reach consumers at the time they are likely to purchase. 

Benefits for Publishers 

Publishers greatly benefit from contextual advertising. They are also pressured to find cookie-less advertising solutions that allow them to continue monetizing the audiences. Contextual targeting provides a solution to place ads without third-party cookies. 

Another benefit is that it allows going beyond keywords, determining a page’s relevance and safety. Finally, it enables niche publishers to also monetize their sites, giving their content the opportunity to be relevant to specific audiences. 

What Are The Cons of Contextual Advertising?

There are not a lot of disadvantages of contextual advertising but here are still a few: 

 

  • Paid ads may be expensive for advertisers. 
  • Ad placement depends on the result of the auction and your competitors. 
  • Ads can be distracting and disrupting.
  • It is not suitable for all products and services.  
  • Ads may be placed along with those of competitors. 

 

How Do You Use Contextual Advertising

A contextual advertising platform operates in three main steps:

1. Powered by Artificial Intelligence technologies, such as computer vision and natural language processing analyzes the information on a web page. The platform scans the following elements: 

 

  1. Content category
  2. Keyword
  3. Page Safety and Sentiment
  4. Events
  5. Text and Images

2. The data is translated into insights to target customers.

3. The contextual platform then places contextually relevant ads on the page that aligns with the content the user is consuming. 

Contextual Advertising in a Cookie-Less Landscape

The industry is leveraging technology for delivering results equal to cookie-based advertising. Here is how contextual targeting is improving in 2021 and beyond: 

Text and Image Analysis

Natural Language Processing allows marketers to understand not only the content but the sentiment of a website. In addition, machine learning helps advertisers provide the most relevant content. 

Brand Safety

Machine learning technology ensures that ad copy only appears to relevant content. This enables them to sell more ad inventory and provide additional scalability. 

Creative Optimization

Contextual advertising platforms ensure marketers can effectively optimize their campaigns in real-time, delivering relevant product recommendations, and sections of content. 

How CodeFuel’s Contextual Advertising Helps You Reach Your Audience 

Publishers can add value to their sites by offering an intent-based journey. CodeFuel’s machine learning capabilities enable it to deliver high yields on every page, with a context-driven company. It is easy to deploy, use, and report. 

 

CodeFuel is a complete monetization platform geared to maximize publisher’s yield by delivering the highest relevance based on intent and advanced analytics. Start monetizing your digital property today. Sign up