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Contextual Targeting: How It Works

Contextual Targeting: How It Works

What is contextual targeting?

Contextual targeting is a method used in advertising to place ads on web pages based on the content provided by a web page. For example, an ad for hiking boots could be placed on a website that talks about different hiking trails. In this example, the ad displaying hiking boots relates to the web page about hiking as hiking boots are an essential to hiking.

Contextual targeting usually involves pairing ads with web content based on keywords or the website’s topic.

What is the difference between contextual and behavioral targeting?

Contextual targeting consists of using keywords and content to trigger ads on a web page.

Behavioral targeting relies on the user’s passed behavior – the action they last took before hitting a web page. For example, User A was on a beauty website, then goes and checks the weather on weather.com and sees an ad for make up.

How does contextual targeting work?

With contextual targeting, keywords or topics are chosen that are relevant to where you want the ad to be placed. Generally speaking, topics are more broad, whereas, keywords tend to be more specific. For example, sports – if an ad has anything to do with sports/athletics then an ad could show up on any website that has some relation to sports. Ads are eligible to show up on a website where keywords/topics match the general theme of the website.

After topics/keywords are chosen, Google will match the ad with the most relevant content based on the chosen topics/keywords. This can be broad or specific, the only difference being specific will only match to the exact keyword you select.

When that’s done, the display network will find a placement to match your ad contextually.

What are the benefits of contextual targeting?

1. No privacy regulations

Contextual targeting does not use personal information when gathering information to target specific users. It will pick up attributes such as type of OS, different websites that are visited and CTA buttons that are clicked on.

2. Context can be more relevant than behavior

Behavioral targeting is not necessarily always the most effective form of targeting.

Just because a user has interest in something or viewed a certain product in the past, doesn’t mean there is intent to purchase.

Contextual targeting, on the other hand, can be considered more real time targeting as it shows ads based on what a user is seeing at the exact moment. This could persuade the user and bring them closer to the point of purchase. 

3. Improved customer experience

Because of the relevance of ads on a web page associated with the content, customer experience is improved.

It has been said that 73% of consumers reported that contextually relevant ads complemented their content experience.

4. Higher purchase intent

As mentioned above, users are significantly more receptive to ads which are contextually relevant to a web page. According to the same study above, purchasing intent was 63% higher for audiences that were served contextually relevant ads over those which were targeted through behavioral methods.

5. Promotes brand reputation

Serving relevant ads where consumers expect to see them builds a good connection with the brand and user. It shows ads that consumers want to see at the moment, not what they saw a few days ago, which sometimes can scare consumers off.

Because of this relevancy, users often find a more positive experience with contextual ads.