Contextual targeting has been around for a long time. Although it gained importance during its initial years, its importance was later on surpassed by behavioural targeting.

But now, the scenario is changing and brands are increasingly using contextual advertising as the primary way to connect with consumers. Below are discussed the reasons why contextual ad targeting has become indispensable for marketers - 

Contextual ad targeting does not involve the use of third-party cookies that collect users’ personal data. Hence, this approach to advertising is fully compliant with the data privacy regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

Major web browsers like Safari and Firefox have already blocked third-party cookies, and Google’s Chrome browser will do so by 2022. Also, Google has recently announced that it will not develop any individual tracking technology in the future. Thus, marketers will be forced to completely abandon the individual tracking-based advertising approach in the near future. Under this scenario, contextual advertising presents itself as the most viable option. Many marketers have already started using the contextual approach to digital advertising.

The effectiveness of contextual targeting is well-backed by research. A neuro-analytical study conducted by Spark Neuro found that the ads that were in line with the content of the articles generated forty-three percent higher neural engagement and more than two times better ad recall. Contextually relevant ads were found to be ten percent more engaging than the content of the articles overall. This neuro-analytic study also found a noteworthy increase in purchase intent with contextually targeted ads.

It is more cost-efficient than behavioural targeting

Contextual ad targeting is more cost-efficient than behavioural ad targeting. This has been shown by a research study. The study found that contextually targeted impressions were significantly less costly than behaviourally targeted impressions, contextual eCPM being thirty-six percent lesser than behavioural eCPM. The cost per click (CPC) for contextually targeted ads was found to be forty-eight percent lesser than the cost per click for behaviourally targeted ads. After considering CPMs for every ad line, the cost per mile viewable impressions (vCPM) for contextually targeted ads was found to be forty-one percent lower than behaviourally targeted ads.

Contextual advertising companies are now abandoning the traditional keyword-based approach in the favour of AI-powered solutions. AI-powered contextual advertising offers precise and granular targeting. It takes into account nuances in context, not only for textual content but also for video content. AI- and computer vision-powered contextual video advertising technology can accurately detect in-video contexts in online videos, enabling highly relevant ad placements.

In today’s time, brands not only require a brand-safe environment for placing their ads but also an environment that is suitable in terms of the nature of their business. AI-powered contextual ad targeting ensures that ads get placed next to only that content that is contextually relevant, brand-safe, and suitable. It provides both brand safety and suitability without killing reach.

Contextual targeting has undergone a transformation from a basic keyword-based approach into a powerful AI-based advanced technology. As it is fully compliant with the data privacy regulations, and at the same time, highly effective and cost-efficient, it is really an indispensable tool for marketers for running successful digital advertising campaigns in the post-cookie era.