What Is Contextual Targeting?

What Is Contextual Targeting?

In this approach, there’s a process to match ads to relevant sites within programmatic ad types. The content of the website where the ad will display is the “context.” Instead of using data sets on demographics or being location-specific, the strategy is that people interested in the site’s topic would also be the audience for an ad.

For example, products or services within a sports category would want to target websites that generally appeal to those who play sports or are big fans. If your advertiser is a sporting goods store, their display ads may perform better when they appear on a site like ESPN.

How Does Contextual Targeting Work?

When setting up a campaign, you may suggest contextual targeting as a strategy. A third-party digital advertising platform connects to a DSP (demand-side platform), where real-time bidding occurs with available inventory. This is the typical workflow of a programmatic ad buy.

If the campaign uses contextual targeting, the “matching” process depends on how websites categorize themselves.

Contextual Targeting vs. Behavioral Targeting

Behavioral targeting focuses on historical data from users gleaned from third-party cookies. The major difference is that contextual targeting has no dependency on third-party data sets because the focus is on the setting (the website).

Behavioral targeting involves the user and their actions. This type of targeting is beneficial, but it’s dependent upon assumptions. Browser history doesn’t always mean intent to make a purchase. We all research many things on web browsers every day that may have little to do with buyer intent or our actual interests.

Contextual Targeting vs. Demographic Targeting

With demographic targeting, the criteria relate to age, average income, location or gender. It can be effective if products or services have a demographic niche. However, most businesses have a broader ideal customer profile.

Another thing to discuss with advertisers is that they may think about demographics with bias or stereotypes. Someone’s age, gender, location and income don’t always put them in the same category. One way it would work is to instead think about people in their borrowing years.

With contextual targeting, the “who” doesn’t matter as much as the “where.” Any demographic profile could visit a website about gardening, for example. Men, women, seniors, Gen Z or others could love plants and flowers. If they see ads on a gardening website for specific products, they may be more apt to click them.

What Are the Benefits of Contextual Targeting?

The greatest advantage is that cookies aren’t necessary. Third-party cookies are going away eventually, although Google just pushed their deprecation back again.

Additionally, it’s the context. As noted above, user actions may not reflect actual interest or a desire to purchase. Contextual targeting may reach a more receptive audience. They spend time on a website because they enjoy the content — sports, movies, celebrities, cooking, etc. An ad that fits within that category could see more clicks.

The ads may even seem personalized to those viewing them. They are “in-the-moment” ads that make sense to serve up on sites with synergy between product and site category.

Behavioral targeting is always looking back at what someone viewed, clicked or purchased. So, it could be too late for the ad to be relevant anymore. If a consumer recently bought a new car, they likely did a lot of online browsing and research, but they are no longer in the market. Dealership ads would be irrelevant.

However, if that same consumer is on a site geared toward maintenance and car performance, seeing an ad for a local detailing shop would be relevant to where they are now.