Is digital advertising dead? Contextual Advertising may be the solution

I’ve written about the power of?context?over the years, but it’s more important now than ever as the world of digital advertising has faced a series of challenges; one of the most significant being the phasing out of third-party cookies. This has left many marketers without the ability to track their customers’ online behaviour, and therefore target and retarget them with relevant ads. With the future of digital advertising uncertain, many are (re)turning to contextual advertising as a solution. But what exactly is contextual advertising, and how does it work?

While contextual advertising has been around for some time, it has gained renewed interest in recent years as a way to fill the gap left by the phasing out of tracking pixels and cookies. Contextual advertising is a form of targeted advertising that serves ads based on the content of the webpage or app being viewed. This means that the ad is tailored to the interests of the user based on the context of what they are currently looking at, rather than their past browsing history. For example, if a user is reading an article about hiking, they may see an ad for hiking boots or outdoor gear, or a cooking website might show ads for kitchen tools.

One brand that has seen success with contextual advertising is Puma. In 2020, Puma partnered with InMobi, a global mobile advertising and discovery platform, to implement a contextual advertising campaign across several countries in Europe.

The goal of the campaign was to promote Puma’s new line of running shoes and to drive foot traffic to their physical stores. To achieve this, InMobi utilised their proprietary Contextual Intelligence platform to serve targeted ads based on the content of the mobile apps being used by consumers, so someone using a running app would see an ad for Puma’s running shoes.

The campaign saw impressive results, with a 68% increase in foot traffic to Puma’s physical stores in the target markets. Additionally, the campaign achieved a 26% higher click-through rate than Puma’s previous campaigns using other forms of targeted advertising.

This success is attributed to the effectiveness of contextual advertising in reaching the right audience at the right time. By serving ads based on the context of the content being viewed, Puma was able to target users with a high likelihood of being interested in their running shoes. This resulted in higher click-through rates and ultimately, more foot traffic to their physical stores.

Contextual advertising is not a new concept, and it’s been used successfully in the traditional advertising industry for many years. Magazines, for example, have long relied on contextual advertising to provide targeted ads to their readers. By analysing the content of each magazine issue, advertisers could place their ads next to articles that were relevant to their products or services. With the rise of?digital magazines, this model is becoming even more powerful. Digital magazines provide a wealth of data that can be used to tailor ads to individual readers based on their interests and the subject matter of each magazine title or issue. This means that digital magazines have enormous potential for providing more effective and personalised ads to their readers, which should translate into higher engagement and ROI for advertisers.

But despite its potential, contextual advertising is not without its challenges. For one, it requires a certain level of sophistication and accuracy to ensure that ads are being served to the right audience. Additionally, it can be more difficult to measure the effectiveness of contextual advertising compared to other forms of advertising that rely on tracking user behaviour.

However, these challenges are not insurmountable. The key for advertisers is to find the right context and thus the right publisher to partner with. And with the right tools and strategies, marketers can make the most of contextual advertising and continue to connect with their target audience in meaningful and contextually appropriate ways.

As more and more consumers become aware of the ways in which their data is being tracked and used, there is a growing demand for greater privacy protection. Contextual advertising allows marketers to reach their target audience without relying on individual user data, making it a more privacy-friendly alternative to other forms of advertising, and when ads are served based on the context of the content being viewed, users are more likely to find them useful and interesting. This is proven to lead to higher click-through rates and better overall engagement with the brand.

While the phasing out of third-party cookies may have some questioning the future of digital advertising, contextual advertising provides a viable solution. By targeting ads based on the context of the content being viewed, rather than individual user data, advertisers can continue to reach their target audience in a way that respects their privacy and viewing habits. While there are certainly challenges to overcome, the future of contextual advertising looks bright. With its ability to provide a more relevant and engaging user experience, its cost-effectiveness, and its respect for user privacy, contextual advertising may be just the solution we need to keep digital advertising thriving.