As digital advertising has evolved, so too has the concept of contextual advertising.
What began as a simple method of placing ads in print media has now transformed into a sophisticated, AI-driven approach in the digital era.
Understanding this evolution is key to staying ahead in today’s competitive landscape, where relevance and precision are more critical than ever.
The origin of interest-based targeting
Contextual advertising originated in print advertising, where ads were placed in newspapers and magazines based on the publication’s content and readership.
For example, ads for cars would appear in automotive magazines, ensuring they reached readers with relevant interests. In this way, ads were placed in front of the appropriate audience without knowing any personal information about them.
Contextual advertising retained its privacy-first approach when it moved into the digital space. The earliest versions of contextual advertising on the Internet primarily relied on signals like keywords present in the content of a webpage.
Ads were placed based on matching keywords or phrases that aligned with the topic of the page. For example, if a webpage contained content about cars, the system would display car-related ads.
The revival of privacy-focused strategies
As cookies began to appear, many advertisers shifted to a demographic-based approach, leading to a temporary decline in contextual strategies.
However, growing concerns over privacy have led to new regulations and prompted users to turn to VPNs, privacy-focused browsers and ad blockers to safeguard their online activities.
As a result, there has been a revival of interest in contextual advertising over the past few years, particularly because the world has become more privacy conscious.
AI’s transformation of contextual advertising
Today, contextual ads have evolved significantly with advancements in technology and AI. Thanks to contextual AI, advanced contextual advertising has the ability to understand millions of articles a day.
By analysing keywords, phrases, images, videos, sentiment and the overall semantic meaning of the content, it gets a human-like understanding of the article. This deeper understanding allows ads to be placed on pages that best align with their message, ensuring they reach users genuinely interested in the product or service, all while maintaining a privacy-focused approach.
Going beyond isolated articles, contextual AI can comprehend the connections between articles and understand where users’ true interests lie within this complex content universe. For example, it can determine whether electric car buyers are also into luxury travel. This allows brands to target precise interests in real-time rather than broad stereotypes, capturing their target audience’s attention at scale and engaging them at the optimal moment.
Not only is contextual advertising privacy-friendly, but it can also be more effective than standard advertising formats. We tested the effectiveness of contextual advertising in Arabic language environments by partnering with global media agency Omnicom Media Group (OMG) and attention measurement company Lumen Research. The study found contextual ads generated around 3.5x more attention per 1,000 rendered impressions than standard IAB formats.
Getting the most out of contextual advertising
According to Statista, global contextual ad spend is forecast to grow by 13.8 per cent year on year between 2022 and 2030. While this rising interest is promising, it has led many companies to claim they offer advanced contextual advertising, making it challenging for brands to identify the best options and ensure they are maximising the benefits of this innovative solution.
To get the most out of contextual advertising, partner with a company with significant industry experience that offers in-house contextual AI technology. Some providers depend on external data, which can limit effectiveness. AI models require time to train, and newer ones may not produce the desired results.
Additionally, look for companies that use high-quality, diverse data for accurate targeting. As the saying goes: ‘garbage in, garbage out’; without the right data, you won’t get the desired results.
Further, ensure you’re working with a company that offers clear reporting on campaign performance, incorporating third-party measurement for unbiased results.
Lastly, work with a contextual provider that offers customised solutions to fit your specific advertising goals.
By incorporating these recommendations for your next partnership with a contextual advertising company, you will ensure your ads are effective, relevant, and scalable, reaching your audience when they are most interested in your offerings while respecting their privacy.
By Sherry Mansour, Managing Director at Seedtag MENA.
