Feb'24·Mike Villalobos·2 MIN

Leverage the Power of Two: Contextual Advertising & First-party data

Home Leverage the Power of Two: Contextual Advertising & First-party data

From browsers like Firefox, Safari, and Opera completely banning third-party cookies to their complete demise in 2024 with Google’s phase-out of cookies; all eyes are on privacy and global regulations. The end of third-party cookies marks the beginning of a new era in advertising as the go-to targeting practice worldwide will become obsolete. 

In a survey conducted by Statista, 75% of marketers revealed that they heavily relied on third-party cookies. 45% of respondents stated spending at least half of their marketing budgets on cookie-based advertising. With the fundamentals of audience tracking, targeting, and personalization becoming obsolete, there is a lot of debate around what will be the next best approach for audience targeting that will give marketers a competitive edge. 

How are marketers preparing for the cookieless world?

Among the options marketers are evaluating, contextual advertising has been one effective stand-out targeting alternative that has gotten the nod from leading global brands. Contextual advertising is backed by new-age tech like AI, ML, and NLP, paving the way for personalized and impactful advertising in the privacy-first world. 

Another alternative that has been around for a while but has garnered more importance ever since the deprecation of third-party cookies is first-party data. First-party data is collected with the knowledge and consent of users when they interact with a brand’s website or advertisement, or purchase a product. However, first-party data is not a magic formula. When utilized individually, first-party data lacks the ability to scale, enhance the precision of audience segmentation, or improve ad placement. 

Contextual advertising is scalable and allows marketers to create custom audiences. This opens doors to never-seen-before opportunities and delivers advertising strategies that go beyond traditional metrics like impressions and CTRs. Contextual ads rank high across impactful attention metrics that provide insights into more quantifiable data like the quality of user engagement and campaign efficacy. Contextual advertising aces granularity, accuracy, and relevance by placing ads based on the content and context of web pages, thus helping marketers go beyond stereotypical audience segmentation practices that rely on audience demographics, past browsing patterns, and assumptions. 

It also ensures enhanced levels of brand safety and brand suitability. Its ability to understand nuances in language and interpret the meaning of content used within a given context empowers brands to avoid harmful or negative content and maximize opportunities. With AI-powered contextual targeting, marketers can display ads in environments where the messaging aligns with a brand’s values and positioning. 


Maximizing impact with the duo

What if marketers could take contextual advertising up a couple more notches? By utilizing precious first-party data repositories along with contextual advertising, marketers can further fine-tune their strategy and maximize the impact of a campaign. Based on the audience information derived from first-party data, audiences can be further segmented based on factors like age group, gender, or location. Since this data is collated with user consent, it is compliant with all privacy regulations. With first-party data-backed audience categorization, marketers can tailor messaging to suit very specific audience segments. 

For example, with the combination of intel from first-party data with contextual advertising, a brand can target its repeat customer base with a new product launch or launch an exclusive privé members-only sale. Campaigns and messaging are more tailored and relevant to the target audience, driving more impact and ROI. It can also be used to create geo-specific campaigns during a particular time of the year or during festivals that are more prominent in a particular location. For celebrations like Valentine’s Week, curated gifting ideas or product collections can be showcased to specific genders and age groups to drive more engagement. 

Fueling contextual advertising with first-party data will empower marketers to strengthen their strategies and create high-impact campaigns that connect with the desired audiences. The duo ensures seamless, privacy-centric, and non-intrusive experiences that customers love. 

Interested to learn more about contextual advertising and its capabilities?

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