Contextual advertising from firms like AdMedia has vastly expanded in recent years. Browser makers respond to pressure from privacy advocates and national governments by removing third-party tracking cookies from the ad landscape, significantly reducing behavioral targeting.
Without behavioral targeting based on cookies, many companies are shuffling to allocate ad spending and reach target audiences properly. Fortunately, AdMedia has proprietary contextual targeting techniques to help companies reach their audience easily and provide comparable results at a lower price.
The President and Founder of AdMedia, Danny Bibi of Los Angeles, explains how you can get the most out of your ad dollars using contextual targeting.
How Does Contextual Advertising Work?
Contextual advertising works by gleaning information from websites. Website data, including text, video, and images, are analyzed by AI systems to see where the most important information lies. Additionally, keywords and keyphrases are analyzed for planning contextual advertising.
Contextual advertising is a relatively simple system that displays ads based on the website’s content. This content is then used to extrapolate what the visitor likely desires, whether they are interested in purchasing or just browsing. Since contextual advertising follows only one site visit at a time, it is much less complex and expensive than other competing strategies like behavioral targeting.
The Difference Between Contextual Advertising and Behavioral Targeting
The primary difference between contextual advertising and behavioral targeting is in the type of information that the advertiser analyzes before providing the ads to the consumer. With contextual advertising, the customer is not tracked from site to site, but rather they are solely analyzed on the site they are currently visiting. With behavioral targeting, the advertiser examines third-party cookies, which are packets of data associated with a specific user profile.
Behavioral targeting is also a costly form of advertising. For example, a behavioral targeting system keeps a digital file on every consumer it tracks. This file grows gradually as the consumer builds a profile. While ad targeting from behavioral tracking is usually accurate, it can draw incorrect conclusions about a customer and cause the advertiser to lose money.
Contextual advertising uses only the user’s current location to serve ads. Several different factors go into the determination of contextual advertising. Among these are the type of site being visited, the text of the website, the images and image metadata, and the general category of the website.
For example, a website visitor may be browsing a childcare website, and the article they’re viewing may be about swaddling a baby. A contextual ad, like those produced by AdMedia, may be able to pinpoint the information on the webpage so accurately that the ads served are for swaddling blankets, as well as other baby-related items like formula and baby toys.
AdMedia’s contextual ads can focus on the information contained in videos, text, and images. Taken together, these diverse sources of information provide a rich view of the potential customer and what they want.
Reasons Why Contextual Advertising is Succeeding Behavioral Targeting
The primary reason why behavioral targeting is in a state of decline is that third-party cookies are on the verge of being phased out of all major browsers. Google Chrome is set to remove third-party cookies in the next year. This will make it much harder for behavioral targeting companies to collect the data to track customers and their buying habits accurately.
Many companies that have long relied on third-party cookies to plan their strategies are now left scrambling for alternatives. Companies like AdMedia, a Los Angeles, California organization that has been involved in contextual advertising for many years, have already pivoted their strategy due to the inevitable changes in the ad industry.
According to Danny Bibi, behavioral targeting also has other disadvantages. Many Internet users find it too intrusive, and others are annoyed or even offended when a website’s ads follow them across the Internet. In some cases, this can cause real emotional problems for customers, especially where highly sensitive topics are involved, like pregnancy and marriage.
Fine-Tuning Contextual Advertising
Contextual advertising may seem simple on the surface, but the field is experiencing many exciting advances in 2022. The AI engines that scan websites and their metadata can produce more sophisticated analysis, meaning that the ads can be drilled down to specific targets much more easily.
Taking Advantage of New Technology
Companies that want to advertise online should understand that they have new options for targeting ads. Rather than relying on third-party cookies, which will shortly be phased out, digital advertisers should know that they have the option of creating contextual advertising.
AdMedia can help any company with an online presence discover how to use contextual advertising. Contextual advertising produces excellent results while protecting customers’ privacy and adhering to new privacy laws.
Contextual advertising can be a great way to spend your ad budget wisely while satisfying your potential customers. Danny Bibi invites all companies to look into the benefits of contextual advertising. His company provides expert services while tapping into the potential for creative growth. Contextual advertising can be a great way to spend your ad budget wisely while satisfying your potential customers.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes