{"id":2128,"date":"2021-12-09T01:18:21","date_gmt":"2021-12-09T06:18:21","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2021\/12\/09\/advertisings-contextual-future\/"},"modified":"2021-12-09T01:18:21","modified_gmt":"2021-12-09T06:18:21","slug":"advertisings-contextual-future","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/advertisings-contextual-future\/2128\/","title":{"rendered":"Advertising\u2019s Contextual Future"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By <a href=\"https:\/\/www.linkedin.com\/in\/danielreinaortega\/?originalSubdomain=es\" aria-label=\"daniel reina, click to linked in profile\">Daniel Reina<\/a>, CEO and Co-Founder of <a href=\"https:\/\/www.tappx.com\/\">Tappx<\/a><\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><em>Exclusive for <a href=\"https:\/\/advertisingweek.com\/\">Advertising Week<\/a><\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Contextual advertising has always made sense.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">From manually buying newspaper ads based on a page\u2019s content through to context-aware approaches to advertising have been ever-present arrows in the quiver of digital marketers. But with the advent of behavioural targeting, context was largely thrown aside by marketers in favour of using users\u2019 granular data to follow them around the internet. With Apple\u2019s abolition of its Identifier for Advertisers (IDFA) and Google\u2019s looming split with third-party cookies, contextual advertising is once again in the spotlight, and with good reason.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Contextual Advertising?<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">In a 2018 survey, <a href=\"https:\/\/www.emarketer.com\/api\/RedirectAsset?a=chart&#038;r=241099\">eMarketer reported that 51% of online users worldwide found targeted ads to be irrelevant. Another 47% found them invasive.<\/a><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">What if it didn\u2019t have to be this way?<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Imagine a world where you are only shown ads relevant to the webpage you\u2019re currently browsing. One where ads for running shoes only pop up on the track blog where you\u2019re researching how to train for a marathon. Or where deep dish doesn&#8217;t follow you into your email just because you googled \u2018does pineapple belong on pizza\u2019?<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">This is the promise of contextual advertising.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">By reading the digital room, it uses the content displayed on content platforms to determine what ads to show\u2014<em>only <\/em>on content platforms such as mobile apps, OTT, media and websites. . It aims to display <em>in-the-moment <\/em>ads based on the content being consumed by users at the time, all without prying private data from users.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">While doing so for static banner ads is relatively straightforward, high-precision contextual ad platforms have more recently perfected the artificial intelligence technology needed to serve contextual audiovisual ads &#8211; meaning another use case of behavioural advertising falls by the wayside.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">With behavioural advertising, snippets of code called \u2018cookies\u2019 track users across the web and show them ads based on their online activity, all the while collecting data that users are increasingly unwilling to share. In the past, these methods were seen as necessary to serve relevant ads and therefore, theoretically, boost ROI. Yet contextual advertising achieves this with non-intrusive ad serving that\u2019s profitable for both advertisers and publishers.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How does Contextual Advertising work? <\/strong><\/h2>\n<p class=\"wp-block-paragraph\">While there\u2019s some industry jargon surrounding contextual advertising (isn\u2019t there always?!), it boils down to a few pretty simple concepts.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Until very recently, contextual analysis technology was focused solely on written content. Relevant ads are displayed by the publisher on the basis of one of two criteria: keyword or topic. With keywords, ads are displayed around the content of a webpage based on a keyword chosen by the publisher to describe its content. Topic-based contextual ads are served based on the webpage\u2019s topic, e.g. sports.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">A contextual ad network uses these principles, with automated analysis of pages\u2019 content that allows it to serve relevant contextual ads. Programmatic technology is integrated to further automate the process: The publisher shares contextual information such as content, URL, keywords, categories or tags to the ad server or wrapper. This information then passes to the relevant ad networks, exchanges and platforms to request contextual ads, which are then supplied.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Another recent development adds much greater sophistication to the contextual ad model. Iit is now possible to explicitly analyse audiovisual content &#8211; rather than just text &#8211; at scale. Contextual ad platforms such as <a href=\"https:\/\/contextualizeit.com\/\">Contextualize-it<\/a> use artificial intelligence to identify objects, places and dialogue, which are used to generate metadata, to allow the segmentation of campaigns using keywords and\/or IAB contextual categories. Algorithms can even identify different scenes in video content, enabling the technology to insert ads at the right moment.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">So contextual advertising is, for the most part, enabled by familiar concepts and technology &#8211; with the secret ingredient of proprietary tech that analyses various elements of a webpage\u2019s content.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Big is the Contextual Advertising opportunity?<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">When it comes to economic viability, contextual advertising does not disappoint. At a CAGR of 13.3%, its global market is projected to reach <a href=\"https:\/\/www.globenewswire.com\/news-release\/2021\/06\/24\/2252352\/0\/en\/Global-Contextual-Advertising-Market-to-Reach-US-376-2-Billion-by-the-Year-2027.html\" aria-label=\"three hundred seventy six point 2 billion dollars, read on globe news wire\">$376.2 billion<\/a> in 2027.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">For marketers holding out hope that behavioural advertising will make a swift comeback, things aren\u2019t looking promising.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Even before discourse around user-privacy permeated mainstream public consciousness in the US, <a href=\"https:\/\/www.statista.com\/statistics\/989896\/users-consent-in-advertising-tracking\/\" aria-label=\"40 percent, read on statista\">40%<\/a> of US-based internet users consented <em>only <\/em>to mandatory cookies while another 10% refused cookies altogether. In Europe where GDPR has been in force since 2018, it\u2019s reported that as few as <a href=\"https:\/\/noyb.eu\/en\/noyb-aims-end-cookie-banner-terror-and-issues-more-500-gdpr-complaints\" aria-label=\"three percent, click to read on NOYB\">3%<\/a> of users want to accept cookies. Google has announced it won\u2019t build alternate identifiers to track individuals once third-party cookies are phased out. Since Apple\u2019s IDFA was abolished, just <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-14\/facebook-fb-advertisers-impacted-by-apple-aapl-privacy-ios-14-changes\" aria-label=\"a quarter, click to read on bloomberg\">a quarter<\/a> of users have opted to share their data for tracking purposes.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The story is reversed for contextual advertising. By doubling down on relevance and eliminating the needs for cookies, context-aware ads have been found to command more click throughs and higher rates. In fact, <a href=\"https:\/\/integralads.com\/uk\/insider\/the-power-of-context-a-uk-consumer-research\/?utm_campaign=WC-2020-Power-of-Context-Research&#038;utm_medium=pr&#038;utm_source=GingerMay&#038;utm_content=corporate-general&#038;utm_term=UK-wb-Power-of-context-PR\">IAS (Integral Ad Science) has discovered<\/a> that (81%) of British consumers want to see ads that match the page content they are looking at. Almost two thirds (65%) of UK consumers will actually have a more favourable opinion of brands that serve them contextually relevant ads.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Advertisers<\/strong><strong>&rsquo; Future is Contextual<\/strong><\/h2>\n<p class=\"wp-block-paragraph\">While consumers have much to gain from privacy and contextual relevance, this doesn\u2019t mean advertisers are dealt the short end of the stick. Far from it.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">By replacing third-party data with first-party counterparts, advertisers are presented with tools that are more potent than ever. From CTRs to conversions and even difficult metrics like retention and attention, contextual ads have seen advertising KPIs soar across the board.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s also the strategic advantage these ads present. For the first time in years, advertisers can target an endless number of niches with laser accuracy &#8211; however obscure they might be.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">And of course, there\u2019s the cost factor. For decades, advertisers have channeled billions into behavioural targeting only to realise they have been shouting into the wind. Whether it\u2019s through non-viewable ads, click farms or bot-generated traffic, a significant portion of ad spend has delivered artificial ROI (or in layman\u2019s terms, been poured down the drain). Contextual advertising presents a more cost-effective solution where advertisers can be sure that they are reaching their target audience, for a fraction of the cost.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Just like with the advent of search engine marketing in the mid-90s, the advertising landscape is entering yet another paradigm shift. As more ecosystems and platforms prioritise user privacy or create walled gardens that ringfence their users, advertisers must jump the sinking ship that is behavioural advertising and tap into the potential of contextual ads.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By replacing third-party data with first-party counterparts, advertisers are presented with tools that are more potent than ever. From CTRs to conversions and even difficult metrics like retention and attention, contextual ads have seen advertising KPIs soar across the board.<\/p>\n","protected":false},"author":7,"featured_media":2129,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[7],"topics":[2],"class_list":["post-2128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-storytelling","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Advertising\u2019s Contextual Future | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advertisingweek.com\/aw360\/news\/advertisings-contextual-future\/2128\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Advertising\u2019s Contextual Future\" \/>\n<meta property=\"og:description\" content=\"By replacing third-party data with first-party counterparts, advertisers are presented with tools that are more potent than ever. 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