The marketing industry’s best-kept secret is not the utilization of AI, but the incorporation of AI in the age-old tactic of contextual CTV targeting
As digital advertising gains more and more traction to overthrow other traditional advertising tactics, data privacy concerns, and third-party cookies are actively involved in reshaping this realm. There is, however, a familiar face in the crowd- contextual marketing. It is gradually making a grand comeback! Contextual marketing recently received an AI-powered level-up, because of which it has completely shaken the programmatic CTV advertising world. But, what is contextual targeting? How are brands utilizing this powerful combo? What kind of data and numbers are brands seeing on adopting this duo? Let’s find out.
What Is Contextual Targeting?
As mentioned before, contextual targeting has existed in the realm of programmatic CTV advertising for a long time now. It’s been around since the early days of the internet when it was as simple as matching ads to the content on a page. The idea was straightforward – show ads that are related to the keywords or topics on a given page. For example, if you were reading a pet training article, you’d see ads for dog food or pet toys. It was revolutionary back then, but times have changed. Now with the technological leaps taken by AI, contextual targeting is all set to take center stage with innovative advertising solutions.
How Is AI Impacting Contextual Targeting?
Artificial intelligence has successfully revolutionized several industries including advertising. It has helped to transform the concept of contextual targeting and renewed it to face the present-day challenges of the advertising world. Advertisers can now use AI-powered recommendation engines to expand their list of keywords, making it easier to reach the right audience. Plus, AI can understand the sentiment of a page and predict trending topics, thereby seamlessly attracting the attention of the audience and increasing engagement.
But, there’s a catch. As smart as AI is, it can’t quite replicate the precision of behavioral targeting, where you target users based on their characteristics and interests. Behavioral targeting can be like hitting the bullseye, but AI-driven contextual targeting is more like hitting the target’s vicinity.
How Has Contextual Targeting Evolved to Rival Behavioral Targeting?
Let’s talk about the latest trend in contextual targeting – Contextual 3.0. It uses AI and machine learning to predict what content people will consume. This next-gen contextual targeting relies on first-party data and machine learning models. It watches how people browse, shop, and consume content all over the internet.
Imagine you’re an advertiser trying to target pet owners. Using traditional ID-based behavioral targeting, you might miss out on a chunk of your audience because not all online content has an ID. With AI-driven contextual targeting, you can tap into a treasure trove of data. It’s like finding a hidden path to reach those elusive pet owners.
How Effective is AI-enabled Contextual Targeting?
The Alliance for Video-level Contextual Advertising or AVCA recently conducted a study that revealed some very captivating factors about the transformative impact of contextually targeted ads.
In the AVCA’s study, the goal was to decipher how AI-backed contextual targeting stacked up against the traditional methods. The findings from this study stunned the advertising industry.
Consumer Engagement Data
The most alluring detail to come out of this study was the fact that viewers give almost 4 times more attention to ads that seamlessly align with the content they’re devouring. Yes, you read it correctly – 3.9 times more attention! With such performance, you can not just complete your targeted goals, but you might even see a higher conversion rate.
But that’s not all. AI-fueled contextual ads also wield substantial influence over brand recall. They boast a whopping 300% increase in aided brand recall and a doubling of unaided brand recall when compared to the old-guard ads that rely on run-of-the-mill demographic data and publisher-declared metadata.
Moreover, when AI-powered contextual ads grace the screen, viewers appear to be captivated. They generate 15% more total ad attention. In fact, a remarkable 63% of the study’s participants confessed to paying more attention to these ads. AI-empowered contextual ads keep the audience’s eyes fixed on the screen. You’d be amazed to learn that 22% more of these ads were viewed from the outset because viewers were less inclined to glance away.
Contextual Targeting’s Impact on Brands
Almost half (42%) of viewers displayed heightened interest in the brand and its products when they encountered these contextually targeted ads. It’s as if the audience is leaning in, asking, “Tell me more.” 38% of viewers stated that they gained a deeper understanding of a product when they were exposed to an AI-powered contextual ad.
Also Read- All The Secrets to Achieving a High CTR Revealed!
How Can You Benefit from AI-powered Contextual Targeting?
Reaching Users Based on Behavior: You can target users based on their behavior, like their demographics and shopping habits, all without invading their privacy. It’s like a personalized shopping assistant who knows your preferences but doesn’t peek into your wallet.
Maximizing Your Reach: With AI, you can serve hyper-relevant ads in unexpected places, not just where you’d expect them. It’s like finding hidden treasures in your attic.
Boosting Efficiency: AI makes your ad campaigns smarter. You get more bang for your buck. It’s like buying your favorite snacks at half the price.
In Conclusion
So, what’s the key takeaway here? In the constantly evolving realm of advertising, where streaming content reigns supreme, context emerges as the reigning monarch. It’s not just about being “in-market” for a product; it’s about being “in the mood” for a brand’s message. To truly engage consumers in the streaming universe, brands need to embrace the power of context. It’s about finding the perfect harmony between what you say, when you say it, and where you say it.
In the world of streaming, attention is the ultimate currency. Contextual advertising, turbocharged by AI, is your ticket to capturing that coveted attention. So, the next time you encounter an ad that feels tailor-made for you, remember that AI-powered contextual targeting is weaving its magic. It’s not merely an ad; it’s an immersive, personalized experience that speaks directly to you.
If you are still interested in knowing more about AI-powered advertising strategies, our experts at 9Media Online are at your beck-and-call. Pick up your phone and call us today!
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