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Contextual advertising: What’s the secret behind the resurgence?

BY Shantanu David

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It’s a statement that pops up every few quarters, not even waiting an entire calendar year. Trust us, we know, having written about its rebirth back in September 2023.

However, as mentioned at the recently concluded Cannes Lions as well as by several industry publications, we are on the verge of (another) rebirth of contextual advertising. With that in mind, exchange4media asked the industry what it was about contextual advertising that made it so ripe for rebirth, repeatedly.

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“Contextual advertising's resurgence every few quarters is powered by its knack for hitting the mark without prying into personal data. With privacy concerns on the rise, brands are flocking to it for ads tailored to content, not clicks,” says Mitesh Kothari, Co-founder and Chief Creative Officer, White Rivers Media, adding that this approach not only boosts user experience by aligning ads seamlessly with what's being read or watched but also taps into AI's power for sharper targeting and location-specific relevance.

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And while the phase-out of third party cookies has been delayed yet again, the role of contextual advertising in the future of data and consumer privacy is undeniable.

Chirag Bhatia, Managing Director – India, Channel Factory says the shift away from cookies and towards contextual advertising is not just a change, but a huge opportunity. “As we navigate the landscape of consumer psychology, it becomes evident that context is king. By aligning our marketing strategies with contextual relevance, we are not just reaching out to the consumers, but we are speaking their language, resonating with their experiences, and tapping into their subconscious.”

Tech Talk

The resurgence of contextual advertising is indeed driven by rapidly developing technological advances. “Innovations in machine learning and natural language processing have significantly enhanced the precision of content analysis and ad placement. These advancements allow for more accurate matching of ads to relevant webpage content, making contextual advertising more effective and appealing to advertisers. Consequently, contextual advertising now offers a level of personalization that rivals behavioural targeting while adhering to stricter privacy regulations,” says Sanmesh Sapkal, Director- Key Accounts, TheSmallBigIdea.

And then there is the fact that contextual advertising, once reliant on mere keyword mapping, has matured significantly. “Today, platforms like Channel Factory are harnessing the power of AI and ML to delve deeper. They’re not just looking at metadata for contextual relevance, but reading into the very fabric of the content. With strategies like Audio Transcription, Computer Vision, and Sentiment Analysis, they’re able to accurately filter out unsuitable content and categorize it efficiently for laser-sharp contextual targeting,” says Bhatia.

Take Artificial Intelligence for instance. Raghav Upadhyay, Head- Performance Marketing, Team Pumpkin, says it's like having a companion analyst who can break down a web page, not just for keywords, but for the whole meaning and the tone, allowing for highly targeted ad placement based on the content's true meaning and intent.

 “It's not just demographics anymore; we're talking about real-time user behaviour, interests, even their sentiment towards the content they're consuming. This ensures that the most relevant ad is displayed at the precise moment a user is most receptive. And with AI constantly learning and adapting features, targeting keeps getting more accurate. It's like contextual advertising 2.0 – way smarter, way more effective,” he says.

 “Contextual advertising, with its focus on the relevance of content rather than user behaviour, offers a privacy-compliant way to reach audiences. It’s a chance for advertisers to build trust with consumers, to engage them on a deeper level, and to create advertising experiences that are not just personalized, but truly meaningful. As we navigate this change, let’s not view it as a challenge, but as an opportunity to innovate, to improve, and to set a new standard for what digital advertising can be,” says Bhatia.

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Tags : Machine Learning Personal Data Contextual Advertising