Home > Resources > Articles > Contextual Targeting: Why is It Important?

Contextual Targeting: Why is It Important?

Contextual Targeting
A KPMG study found that 86% of consumers are concerned about data privacy and 78% about the amount of personal data collected. Industry players are re-envisioning their future strategies and how they will need to adapt to the impending demise of third-party cookies.

Contextual targeting has resurged to ensure campaign reach and effectiveness, Let us examine how contextual targeting can help advertisers adapt to a cookie-less future:

Targeting Has Advanced

AI and machine learning are trending. They mimic human behavior to understand the context of any given environment to serve relevant ads. This type of targeting is called semantic contextual targeting. AI advances with Natural Language Processing (NLP) enable deeper, more nuanced page analysis that can understand tone and sentiment. Advertisers can place campaigns more reliably and brand-safely without cookies or other identifiers. Recently, TikTok launched its new contextual tool, TikTok Pulse. Brands can advertise alongside top-performing content in the “For You” feed. This symbolizes a privacy-conscious future for the digital advertising industry.

Contextual Targeting Can Outperform Third-Party Cookies

Contextual targeting can outperform cookies in clickthrough rate (CTR), cost-per-click (CPC), and viewability. Contextual targeting does not require user information, first-party data, or consent to work.

Advertisers like you can target the audience using brand-relevant content to boost brand recall and engagement, even in niche categories. You can fine-tune your inventory selection and create custom segments. This reduces the risk of the ad appearing alongside inappropriate content. Contextual targeting is also good for publishers because it lets them show ads that are accurate and relevant at the right time.

CTV is a New Contextual Ads Frontier

Targeting the right audience without cookies is difficult in CTV, but contextual targeting and the rise of more industry players offer scalable and customizable solutions. AI and audio recognition can target viewers based on what they're about to watch. Such individualized, non-disruptive ads ensure performance and brand safety in premium broadcast environments.

Final Thoughts

Changes in the advertising industry, combined with advancements in contextual targeting, make it more relevant than ever for advertisers and publishers. The industry must collaborate to create more privacy-compliant and brand-safe environments in the future.

Spotlight

Hello Sunshine

Hello Sunshine is on a mission to change the narrative for women. Founded by Reese Witherspoon, Hello Sunshine is a media company that puts women at the center of every story we create, celebrate and discover. We tell stories we love–from big to small, funny to complex–all shining a light on where women are now and helping them chart a new path forward.

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Read More

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