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Understanding the Importance of Contextual Targeting and Relevance of Ads

Contextual targeting or advertising refers to the placement of a display ad on websites that are directly related to the product being offered in the ad.<br>

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Understanding the Importance of Contextual Targeting and Relevance of Ads

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  1. Understanding Contextual Targeting and Relevant Ads • Contextual targeting or advertising refers to the placement of a display ad on websites that are directly related to the product being offered in the ad. • It's an old and simple strategy that wasn't super popular before because its performance was lower than targeting using cookies. • However, sooner than expected, it has now become the most dominant form of online advertising. • Relevant ads refers to how closely an advertising campaign matches a user's search.

  2. Problem With Behaviour-Based Targeting Methods • Contextual targeting is intended to increase user engagement by displaying ads that are relevant to the content being consumed. • Behavioral targeting relies on users' past browsing behaviors and interactions to serve personalized ads. • Personalized ads can sometimes creep out users who are uncomfortable with brands tracking their browsing history and habits. • In fact, 66% of consumers have expressed discomfort with businesses and brands tracking their browsing history to serve them personalized ads.

  3. Statistics Highlighting the Importance of Contextual Targeting • In 2018 the contextual advertising market was USD 125.79 billion and it is expected to reach USD 297.68 billion by 2023, at a CAGR of 18.80% between 2018 and 2023. • 49% of US marketers surveyed are using contextual marketing today. • Context is so powerful that 49% of brand marketers are looking to contextual advertising to replace cookies. • Nearly 70% of consumers feel ads are more likely to be recalled when they appear next to relevant information.

  4. Benefits of Contextual Advertising • Does Not Rely on User Data • Less Disruptive • Cost-Effective • Boost Sales • Increase Brand Awareness

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