What is Contextual Advertising? Your Guide to Getting Started Today!

By 2026, experts estimate that the total
global contextual advertising spend will reach $335.1 billion per year.
But why are so many people investing in contextual advertising?
What even is this advertising
and how does it differ from other types like behavioral advertising?
Today, we will dive into everything
you need to know about contextual display ads.
This will include how they work,
why they are important, and the best ways to use them.
What's good, guys? It's Ben here from Neighborhood,
where we help businesses find, sell to, and keep their people.
Contextual advertising is a type of online advertising that involves placing specific
ads on a web page that's relevant to its content.
For example, if you're visiting the style sections of the New York Times website,
you're probably going to find ads for clothing, shoes, or accessories brands.
Contextual advertising takes place with the help of contextual targeting.
On an ad network such as Google ads, it allows you to target specific
audience segments based on parameters like keywords and website
topics while providing ad content that's optimized for every segment.
Before we delve deeper into contextual
advertising, we must get on the same page about what it actually is.
While contextual and behavioral advertising are often
confused, they are definitely not the same.
Contextual advertising is based
on the audience's environment and the page where the ad is displayed.
It utilizes contextual targeting
of specific websites and keywords to present ads to a group of consumers
whose interests make them more likely to be receptive.
Behavioral advertising, on the other hand, is based on the audience's behavior
and the actions the user takes before reaching a web page.
This includes activity on social media, links clicked, and articles read.
Through behavioral targeting,
ads can be displayed to individual consumers who are likely to be interested.
To put it simply, contextual
advertising has to do with the content of the web page,
and behavioral advertising has to do with the past internet behaviors.
The contextual advertising market is
growing rapidly for a wide range of reasons.
For today's video, we will explore just a few of the key
benefits that brands are experiencing by using contextual display ads.
Many brands find that contextual
targeting is easier and more cost effective than other options.
One reason is that other options like
behavioral advertising require a ton of data.
To collect and analyze this information, you're going to need to invest your money
into expensive software and your time into sorting through that data.
Because contextual advertising is less
personal than behavioral advertising, it's often less expensive.
Contextual targeting also allows you
to reach a potentially more receptive and relevant audience than other forms,
which can lead to a great return on investment.
The average person sees thousands of ads daily, often without even realizing it.
Many people say that they don't even
notice ads anymore because they become so good at tuning them out.
Ad fatigue is real and internet users are
particularly wary of highly targeted behavioral ads.
The good thing about contextual
advertising is it can help you combat ad fatigue by providing highly relevant
content without being so personalised that customers start to feel watched.
As contextual targeting focuses on the content
of the web page, you can assume that people visiting
the page are at least somewhat interested in what you're selling.
By presenting people with the right
content at the right time, you increase the likelihood
of your ad being clicked and the chance of a conversion.
Since the implementation of GDPR, brands now require visitors
to consent to use cookies for data collection.
This regulation has significantly
hindered brands' reliance on behavioral advertising.
Contextual targeting is less personal and not bound to the same
user privacy regulations as behavioral advertising.
So it's safer for advertisers to use this strategy without worrying about getting
in trouble for using customer information incorrectly.
Behavioral advertisers
don't just have to worry about protecting themselves from a legal standpoint.
They must also consider their reputation.
It's not uncommon for a brand's
advertisements to appear in dubious environment such as on web pages for adult
or extremist content because of the user's previous online behaviors.
This issue can be particularly troubling if you don't want your brand
associated with this questionable internet content.
When you rely on contextual display ads,
you get more control over where your ads show up.
These days, lots of people find highly
personalised ads based on their online activity to be creepy.
They don't like the idea of being followed online, and they may be turned off by ads
that show the advertisers know way too much about them.
Contextual advertisements make more sense to the consumer.
Consumers understand why they might get
an ad for an accounting software when reading a business or financial blog.
So now you know some of the main benefits
of contextual display ads, but what about putting them into practice?
Don't worry, I've got you covered for this too.
Here are eight tips for running a successful contextual ad campaign.
Number one, divide your ad campaigns.
Resist the urge to put all of your advertising eggs in one basket.
Instead, create separate ad groups for each different audience segment.
When you avoid using the same ad groups across the board,
you can still reach a wide audience but with much more targeted content.
Second, analyze your target audience.
The more you know about your target
audience, the easier it is to get your contextual display ads in front of them.
Research your target audience's internet habits thoroughly.
Doing so is going to allow
you to run your ads on the right pages and put them up at the correct time.
This can be achieved by analyzing data that you have already collected
or by conducting surveys on existing and potential customers.
Third, you're going to need to conduct some competitor research.
In addition to learning about your
audience, it's also helpful to know about your competitors.
Check out their ads and where they appear to brainstorm ways to improve yours.
Do you need to use different keywords?
Can you update the design to make it more eye catching?
Could you make your ad copy more engaging than the competition?
It's going to be hard to know if you
haven't seen what's working for everyone else.
Next up at number 4, group your keywords effectively.
The long tail keyword approach or using
longer phrases rather than single word queries is often more effective.
Broader keywords can have less competition
than short tail keywords and allow you to target more specific inquiries.
You should also group keywords that aren't frequently used together
to catch neglected segments of your target market and increase your brand exposure.
You should also utilize relevant keywords that you've noticed your
competitors haven't used to help you stand out from the crowd.
Tip number five, you're going to want to use a cost per mille
approach if you're targeting brand awareness.
The CPM advertising technique involves
paying for every 1,000 impressions of an ad on a particular network.
Cost per mille is often more effective,
so it's great if you're just starting out with ads or you have a tight budget.
It's great for building brand awareness
because it puts your ad in front of more sets of eyes.
Moving on to number six, write attention grabbing messages.
As consumers are bombarded with information
every time they go online, you need to make sure that your content stands out.
Ensure that all of your ad copy is captivating and clearly
communicates both your unique selling points and your brand identity.
Additionally, you should always
include calls to action that clearly tell people precisely what you want them to do.
You want to encourage viewers to stop
scrolling and click on the ad to check out your products.
Number seven, use retargeting.
Contextual ads aren't just for promoting to new customers.
You can also use retargeting to remind
people who visited your site to complete a purchase or to show previous customers
other products and services that they might be interested in.
This technique definitely blurs the line
between contextual and behavioral advertising.
But by only displaying
remarketing ads on relevant websites, they appear more organic.
This approach helps to entice people back
to your site and encourages them to purchase more.
Lucky last at number eight, track your ad performance carefully.
Once your campaign is up and running,
you're going to need to pay careful attention to their performance.
Unfortunately, ads are never a set and forget process.
They're always going to require you to
monitor their performance and take action based on what works and what doesn't.
Note which ads get the most clicks and produce the most conversions.
Then use this information to make better
and more productive advertising choices in the future.
Contextual advertising is a great way
to reduce advertising costs while expanding your brand's reach.
It's also going to help you combat ad
fatigue and achieve the best outcomes for your campaigns.
Using contextual targeting, you can still reach a relevant audience
with the right content, but without any of the creepiness or legal
limitations associated with behavioral advertising.
If you still think you need some extra help getting started with contextual
advertising, please don't hesitate to reach out.
There is a link down in the description.
And if you have enjoyed today's video, please don't forget to like, subscribe,
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Plus, if you want to read more about paid ads or contextual advertising,
we have a whole range of blogs on our website at the link in the description.
That's it from me, guys. Happy marketing.