Context – The kingpin in the future of advertising

There is an ever-increasing focus on data privacy, with consumers world over becoming more guarded about what they share – and how that information can and may be used by businesses. 79% of Americans worry over the safety of their personal data. Governments and law enforcement agencies across the US, Europe, and LATAM are answering the public demand with evolving data privacy regulations. 

From the time GDPR came into effect in 2018, businesses have been scrambling to keep up. And the next big evolution will be when Google phases out third-party cookies from Chrome. Just as Firefox and Safari did away with third-party cookies, so too will Chrome, though not quite as soon as Google first promised.

Unless you are a brand with a wealth of 1st party data, or you are a publisher creating your own walled gardens, are a DSP setting up your own solution, it is going to be increasingly difficult to track and target consumers once cookies are gone. All said and done, the end of third party cookies is nigh, and the fact is that already a significant number of consumers in the US and UK are not reachable via third party cookies. Brands big and small are increasingly concerned about the future of their digital advertising initiatives, and whether there will be a seismic shift in how they can reach consumers.

Why contextual advertising matters now

The answer lies in contextual advertising. While not new, it has stopped playing second fiddle to third-party cookie-led advertising in a world with GDPR and other such data privacy laws. Brands, agencies, and vendors, long used to building targeting strategies around cookies and collecting and selling personal data, must rally around the inevitable changes to continue creating relevant, targeted advertising campaigns. After the death of the cookie, contextual advertising will take the place of cookie-led personalization, becoming the kingpin in the future of advertising. 

Brands and publishers’ focus on contextual comes from the fact that it is an effective way to place ads, without the need for cookies. Rather, it relies solely on understanding both the content and context of the page, in order to determine whether that page is a suitable and relevant medium for the ad. In keeping with consumers’ preference for seeing ads that are relevant to and match the content they are viewing on a page, this survey found that 4 in 5, or 81% of consumers prefer the advertisement that matched the displayed content.

How does it help target quality audiences?

When and where an advert shows up has great significance in contextual advertising. The vast majority of US consumers appreciate ads more when the content is personalized to reflect their preferences. But contextual advertising goes beyond just placing the right message at the right time and for the right consumer. Using the latest in machine learning techniques and AI, brands can now receive human-like understanding of any webpage, without the use of cookies.

Rather than feeling annoyed and “followed” on the internet, consumers could actually come to appreciate an ad when it is placed with relevance and in context to the information/service they are currently consuming. They will be more likely to click on the ad, or at least not ignore it, as opposed to when consumers see an ad that is completely out of context to the content they see on the webpage.

Consumers are increasingly putting brands and businesses of all sizes to the test. Ethics, social responsibility, transparency, and other such values are attributes against which consumers judge brands, and whether or not they choose to buy from them.

The top benefits of contextual advertising

There are definite and strong advantages to contextual advertising. 

• Relevancy: it speaks more directly and personally with the online consumer. 
• Engagement: Consumers are more likely to pay attention and engage with a contextual ad. You are more likely to connect with consumers if you serve an ad relevant to what they are reading at that time.
• Cookie-less solution: Free of policy and privacy restrictions, it doesn’t use personal data and is non-intrusive, making it a step ahead in a soon to be cookieless world.
• Focuses on brand suitability as well as brand safety: The use of NLP and AI means contextually sensitive content that enhances brand experience and thereby the bond with the customer.
• Scale: The scale of building contextual or personalized segments in order to reach your target audiences is endless., so you can deliver ads at a highly granular level and eliminate impression wastage.

So, whether the aim is to achieve a specific KPI or to ensure all content is relevant and meaningful to the brand’s ethos, contextual advertising is the way to go.

Authentic advertising with relevant messaging is the way forward in this increasingly privacy bound world. Compliance to laws aside, when ads are contextual and personalized, they end up being more successful as well.

Read about how our client, Sensodyne was able to reach and connect with a relevant audience using contextual advertising, specifically with bespoke video creatives that ran across high attention placements. They achieved +7.4 stronger view quality and were 11x more effective in maintaining the audience’s attention.