Table of Contents
What is Contextual Advertising?
Contextual advertising involves a specific method of presenting content to users, whereby the promotional message is embedded in a context that is relevant to the recipient. Thus, the advertisement presents content tailored to the content of the pages on which it is placed. The advertised content is related, for example, to information recently searched by the user, products that the user frequently purchases, or the user's interests. Contextual advertising customizes content, reaching potentially interested recipients, which contributes to its significantly greater effectiveness compared to ordinary, randomly displayed advertisements. An example could be displaying an advertisement for a food processor on a page dedicated to cooking and culinary recipes.
The concept of contextual advertising has been significant from a marketing perspective for over 15 years; however, it has been overshadowed by user tracking technology utilizing cookies.
Currently, the tightened regulations on personal data protection and the continuously growing trend of user privacy online, along with changes in the policies of the leading global search engine, have caused a renaissance in contextual advertising. Contextual advertising has evolved and now relies not only on the content of the page and keywords embedded in the website but can also utilize content, audio, location, and semantic keywords.
Contextual Targeting as an Alternative to Third-Party Cookies
Due to the analysis of content on the website and its evaluation based on factors such as:
- thematic categories, i.e., the assessment of what content is addressed/presented on the page,
- sentiment, i.e., the assessment of whether the tone is negative or positive,
- emotions, i.e., the assessment of what emotions are conveyed,
It is possible to quite precisely tailor contextual advertising to the interests of the recipient, which constitutes an effective alternative to targeting based on audience groups. It is also important to note that the results of various studies aimed at assessing the reception of contextual advertising by users indicate that this reception is significantly more positive than in the case of ordinary, random advertising. It also turns out that consumers are more favorable towards those brands that display contextually relevant advertisements on their websites.
Moreover, contextual solutions provide the scale of advertisement reception that advertisers need, without the necessity of using so-called email hashing (i.e., using encoded email addresses to obtain other personal data about their recipients, such as their behaviors related to the email address, which are recorded), obtaining user consent, or employing any cookie-like mechanism.
Contextual advertising will thus become a lifeline for marketers who, in light of the strategy change regarding cookies announced by Google and the impact of regulations aimed at enhancing user privacy, such as the provisions of the General Data Protection Regulation (GDPR), must change their tactics by 180 degrees to navigate the upcoming 'cookie-less' era. Furthermore, if we consider that context is defined by much more than just the content of the page (e.g., mindset, timing, screen size, setting, whether someone is watching alone or with someone else, etc.), we can identify many new opportunities for generating a significant impact from campaigns.
As mentioned above, context is significantly more than just keywords, content on a website, or a segment of video content that the user is watching. Context also represents a specific moment or the mindset of the client at that time, their likely mood, as all of this will greatly influence the user's openness to the displayed advertisement. It is worth recalling the example used in the Guide to Contextual Advertising by IAB Europe (European-level association for the digital marketing and advertising ecosystem): if you are watching a 90-minute Hollywood movie with your partner on the couch at 9:00 PM and you see an advertisement for last-minute holidays in Ibiza, you may very well be in the right mood to start planning a joint vacation on a sunny island. However, if the same advertisement reaches you at 8:00 AM while watching the morning news, it is highly likely that it will not achieve the same effect and may even lead to frustration at that moment, highlighting the negative aspects of the advertisement, such as its persistence and the fact that it interrupted the content being viewed.
Given the factors considered when displaying contextual advertising, it can often be a better solution than targeting the user using cookies. Frequently, there may be more than one person in front of a computer, television, etc., which cookies simply do not recognize. Thus, during a break while watching the latest Disney movie on a Sunday morning, based on the information collected in cookies about the user (e.g., a woman aged 30-35, who likes exclusive brands and healthy food), the displayed advertisements will offer the latest shoes from her favorite designer or encourage online shopping at the new store “Bio, eco, spa” instead of, for example, an advertisement for a newly opened amusement park for families with children, which in that context could attract much greater interest. Targeting advertisements to users without considering the context, in many cases, will not yield the expected marketing benefits and may even evoke negative emotions.
Who will really be affected by the planned changes, or a few words about first-party cookies
The impending end of third-party cookies has also led to an increased interest in so-called first-party cookies, which are created and stored directly by the website that the user visits. First-party cookies should be collected by website publishers with the consent of users. Publishers who collect first-party cookies therefore have knowledge of what their users are interested in. With this knowledge, publishers can take actions that influence specific audiences. Marketers, using the insights that website owners possess for contextual targeting, can ensure that marketing content is as closely tailored to the audience as possible.
Free knowledge about GDPR.
Use it freely!
Advertisers who have based their strategies on tracking internet users across websites, that is, on collecting data regarding browsing across multiple sources, will primarily suffer from the exclusion of third-party cookies. Interestingly, the biggest beneficiaries are likely to include Google itself, as well as Apple, Facebook, and Amazon, which are giants that have access to a wide range of their users' data, having collected it for years through their services that require users to log in.
Looking at Google's decision through the lens of first-party cookies, it is difficult to have positive feelings regarding one of the largest technology giants joining the 'privacy first' movement, as it is evident that this step is dictated solely by a certain business strategy and Google has opted for it only due to the absence of any negative consequences directed towards it. With the resources of first-party cookies that Google possesses, this giant can continue its marketing activities to an unlimited extent.
What next?
In a post third-party cookies world, the use of alternative solutions, such as contextual advertising or the collection of proprietary cookies, is essential for conducting effective marketing activities. In recent months, the possibilities for contextual targeting have significantly evolved, providing advertisers with greater confidence that this method of advertising can be a highly effective solution, primarily due to the understanding of the target group and the targeting of recipients based on their interest in specific content. Furthermore, this solution aims to protect users' privacy and does not excessively intrude upon it, as is often the case with user tracking through third-party cookies.
According to IAB Europe, the key to the future development of contextual targeting is industry collaboration. Technology platforms will need to collaborate with those who specialize in contextual targeting, enabling them to build advanced, comprehensive solutions for advertisers based on their technology. In this way, these platforms will be able to offer brands a better understanding of high-performing content that forms the basis of effective online and offline marketing strategies, as well as build accurate and detailed audience profiles based on more than just assumptions about past behaviors.
