6 reasons why contextual targeting is perfect for your business

Companies are always looking for marketing and advertising strategies that deliver successful campaigns. With personalization becoming the new normal, brands are striving to create campaigns that are relevant to their target customers. There's a heavy reliance on getting customer data to create these personalized campaigns, and it's been working for several years. However, times are changing and customers are now reacting negatively to these data-dependent ads. According to a HubSpot survey, 64% of respondents stated that ads are annoying and intrusive. Regulatory bodies such as the AVG are also introducing stricter laws. In a world of struggling advertisers, contextual targeting is key to data-independent personalization.


Contextual targeting is an advertising strategy that assigns ads based on website content. It uses contextual information rather than personal data to determine where and when ads appear. For example, say an advertiser wants to sell men's perfumes. There is the possibility to collect data from first and third parties to design personalized campaigns. However, doing so may lead to breaches of data privacy laws. To avoid this, all the advertiser needs to do is target websites that deal with men's health, as the visitors to these sites are likely to be interested in men's products.

In general, as opposed to using third-party cookies, contextual targeting uses keywords extracted from online content. This method allows advertisers to target users based on the content they view, such as a specific website, video, or article. Consequently, it enables advertisers to target specific audiences with more relevant and timely ads. It can also be used to segment users and show them more personalized ads.


According to Statista, global spending on contextual targeting will reach $ 228.66 billion by 2023. This is an increase of $ 71.26 billion compared to global spending in 2020. Why is contextual advertising growing in popularity? This is because of the benefits that contextual advertising brings to e-commerce. They contain:


Contextual targeting is cost effective and requires fewer resources to implement. Unlike behavioral targeting, which requires a lot of data, software and analytics tools, context targeting uses real-time content data. In addition, it allows advertisers to target their ads to a more motivated and relevant audience, resulting in efficient use of advertising budgets. That's why it's a bargain for small businesses looking to scale and large companies aiming for higher ROI.


According to the statistics, 74% of the companies agree that user experience is essential to drive sales. Contextual targeting maintains relevance as there is a high chance of engagement if ads are not intrusive. Businesses can also use it as a form of personalization as it allows for better brand relationships due to the usefulness of the product. In addition, the information presented is relevant to their search and exactly what they need. Consequently, it will increase brand awareness.


According to Google, ads that are relevant to the viewer or people like them receive three times as much attention as the average ad. Contextual targeting allows businesses to target ads to users based on the keywords and phrases they use in their searches. Consequently, relevance generally indicates that audiences will respond positively to an ad. With contextual advertising, the ads displayed are relevant to the user's query, increasing the likelihood of engagement and conversion.


Monitoring data is an important factor in running successful advertising campaigns. Contextual targeting makes it easy to track and track ad campaigns in real time. This allows marketers to quickly identify which ads are performing well and adjust campaigns accordingly. According to statistics, 80% of the companies are experiencing an increase in revenue due to such real-time data.


Businesses are striving for risk-free methods of interacting with customers, and contextual targeting provides that. After all, customer privacy is paramount when it comes to brand-customer relationships. According to Tableau, 63% of internet users believe that most companies are not transparent about how their data is used. In addition, 48% has stopped shopping from a company due to privacy concerns. Currently, third-party cookies are classified as private information under privacy laws and advertisers must follow strict guidelines when collecting them. However, contextual targeting is a game changer for any business. This tactic eliminates reliance on third-party cookies, keeping companies on the right side of the law.


Ultimately, this is the only factor companies look for when choosing one marketing strategy. By combining all functions, contextual targeting offers the opportunity to increase ROI. Overall, contextual targeting helps you better target the right audience, increasing your chances of conversion. It also contributes to cost savings by avoiding unnecessary targeting of irrelevant audiences. In addition, research shows that contextual advertising can increase ROI by as much as 300%. According to an AdGooroo study, campaigns with contextual ads had an average click-through rate (CTR) of 0.45%, compared to 0.19% for campaigns without context targeting.


In short, contextual targeting can contribute to a more meaningful browsing experience. It's a cost-effective and efficient way to advertise to customers, especially now that we're living the world without it cookies enter. Consider this one advertising strategy to find the right target groups for your products.

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