Since privacy is front and center for many advertisers, they need to adopt alternative marketing strategies that prioritize privacy rather than relying only on third-party cookies (3PCs). Advertisers should recognize the significant impact of contextual targeting — it establishes genuine connections with consumers and increases engagement. This strategy displays ads to viewers depending on the content they’re viewing at that moment.
In contextual advertising, ads are aligned with a website’s content and keywords. Unlike behavioral advertising, which leverages user data — such as browsing history and preferences that’s collected over time — to provide tailored ads, contextual ads focus on the website’s context rather than personal information.
Programmatic advertising uses algorithms and real-time bidding to purchase and place ads across websites, targeting users based on their behavior and demographics. Unlike programmatic, contextual advertising focuses on a website’s content to showcase relevant ads without tracking user data or third-party cookies.
Let’s explore six examples of contextual targeting that advertisers should consider to accomplish their objectives.
Content-based targeting displays ads based on the website content a user is viewing. You can see examples of this on many sites that gather revenue predominantly from advertisements because this makes the advertisements they serve more relevant to their audience.
Content-based targeting on news websites displays relevant advertisements with the keywords and themes of the news being viewed by page visitors. For example, a browser reviewing content on a healthcare consumer website might see ads for blood pressure monitoring devices, thermometers, or COVID-19 testing kits.
Location-based targeting is another example of contextual targeting. It helps advertisers identify potential customers' exact locations. This is possible with the help of GPS, IP addresses, and other location data. Delivered in real time, the ads are created through geofencing, which creates a virtual boundary around specific locations where the ad would be most effective.
For example, a popular office supply store like Staples or Office Depot can target students with school supplies around the University of Southern California’s campus. These companies can identify and reach potential customers nearby by setting up a digital barrier around the grounds. This strategy ensures the ads reach individuals likely to purchase school-related materials such as computers, keyboards, and notebooks.
Keyword matching in blogs and articles is another prime example of contextual targeting. After scanning the content of the blogs and articles, relevant advertisements are displayed showcasing products and services related to that content.
For example, in a travel blog about Cabo San Lucas, providing readers with information about local spots, restaurants, and sunset dinner locations, keywords like “Mexico,” “Cabo,” and “Serene Dinner” would appear frequently. The ads displayed throughout the blog would include promotions for all-inclusive resorts or guided boat tours in Cabo, being of relevance to readers.
In-stream advertising on a platform like YouTube is a great example of contextual targeting. Advertisements are relevant to the content of the videos, relating to the audience and increasing the likelihood of engagement.
For example, a software engineer wanting to focus more during their workday would search for “Calming Music to Focus” on YouTube. Before the video plays, they might see an ad for an AI-powered tool designed to optimize workload and increase productivity. By showing the advertisement at a moment when the engineer is thinking about managing their many tasks for the day, the advertiser effectively captures their attention and promotes their tool.
CTV refers to internet-connected devices that allow viewers to stream content. This advertising strategy targets viewers on their devices, exposing them to advertisements while they watch their favorite movies and shows. CTV advertising has grown in popularity, especially among millennials and Gen Z viewers, who are molding the digital advertising landscape.
The broad reach of CTV content, often viewed with friends and family, means advertisers cannot always pinpoint who will see their advertisements. Contextual targeting enhances CTV’s effectiveness by pairing advertisements with the content a viewer watches, making them relevant to streamers and maintaining a privacy-centric strategy.
For example, an automobile manufacturing company like Subaru or Toyota can target viewers watching car-related content and content that portrays the same adventurous, outdoorsy, and active spirit that embodies its brand.
Advertisers leverage contextual targeting on ecommerce platforms to reach consumers who are browsing content similar to their products or services. Advanced algorithms analyze keyword search data and website content to display relevant ads, making them appear helpful and important rather than inconvenient.
An example of this is Google Shopping Ads. Advertisers who want to promote high-quality golf equipment can reach potential customers interested in golfing tips and tutorials. By leveraging Google Ads, advertisers display their ads on websites related to golfing. When users type in keywords like “golf equipment haul” or “golfing tips,” they are exposed to the relevant golf-related advertisements throughout the website.
The number of options available for contextual ad platforms can be overwhelming. We’ll quickly cover some of the leading platforms, including Google Ads, Facebook Ads, and Amazon Advertising.
Google Ads provides users with several contextual targeting options, allowing advertisers to target specific keywords or audiences. Google shows advertisements to relevant audiences across websites within the Google Display Network.
Facebook Ads are seamlessly integrated into Facebook news feeds and are shown as sponsored content on Instagram. Advertisers can target audiences based on interests, demographics, and behaviors.
Amazon Advertising is another great platform for contextual advertising. Advertisers can target users based on previous searches, browsing behavior, and purchase history.
Advertisers looking to build a loyal customer base should serve the right messages to the right audiences with well-designed ads. To gain repeat customers and grow revenue, use eye-catching designs, clear and simple text, and remember to incorporate a strong call to action. Since you have a short amount of time to get your messages across, use visually striking colors to grab potential customers’ attention and try to convey only a single message at a time, avoiding clutter.
If you want to expand your creative services, we offer free creative ad services for all our advertisers. AdRoll will create ten customized ads for advertisers within five to seven business days. Advertisers will also receive a new set of free ads every 90 days, which will be automatically uploaded to your Ad Library.
Segmenting your audience is crucial for effective contextual advertising. By dividing your customers into specific groups based on their shopping habits, you can tailor your ads to resonate more deeply with each segment, thereby increasing engagement and conversion rates.
Start by analyzing the four key types of audience segmentation:
Demographic segmentation: This involves categorizing your audience by factors like age, gender, income, education, and job title. For example, you might target a campaign specifically for women aged 25–40 with advanced degrees and a household income of over $70K. By understanding your audience’s demographics, you can craft messages that speak directly to their life stage, challenges, and aspirations.
Psychographic segmentation: This goes beyond the surface to understand your audience’s attitudes, values, and interests. For instance, if your product appeals to outdoor enthusiasts who love rock climbing, your ads can highlight adventure, sustainability, and community, aligning with their lifestyle and values.
Geographical segmentation: This focuses on your audience's physical location. Suppose your brand has a strong presence in West Coast cities like Los Angeles or Seattle. In that case, you can create campaigns that leverage local culture, weather patterns, or regional events to make your advertising more relevant and appealing.
Behavioral segmentation: This is all about your customers’ actions, such as their purchasing habits, brand loyalty, and online behavior. For example, targeting cart abandoners with a special discount or reminder can effectively nudge them toward completing their purchase.
By using these segmentation strategies, you can create more personalized and impactful ads that resonate with each unique group within your audience. Instead of a one-size-fits-all approach, you’ll deliver content that speaks directly to your customers’ needs and desires, making your marketing efforts more efficient and effective.
It’s highly recommended that advertisers check out the many different contextual advertising platforms that help streamline the process of capturing potential customers’ attention and boosting engagement. AdRoll’s platform is powerful, providing advertisers with all the necessary contextual targeting resources to help them reach new website visitors by showcasing their brand alongside content their ideal customer is interested in.
Now that we’ve explored many contextual targeting examples, you might be wondering, “When can I get started?” With AdRoll’s contextual advertising solutions, you can begin crafting and delivering effective ads today!
Let us help you level up your targeting efforts so you can begin connecting with more shoppers while maintaining a high return on investment.
Last updated on August 28th, 2024.