While writing our blog about Google’s announcement of their 3rd party cookie phase out the term contextual advertising came up as a possible solution. We found this topic worth digging into a little. Contextual ads are placed on web pages based on the content of those pages. For example, if you’re reading an article on Yosemite an ad for hiking boots may pop up. This keeps the user’s data privacy in tact while still getting the right information in front of the right audience. Contextual advertising relies on the relevance of its keywords, topics, and images so it’s important that the agency be very clear on these things. It also doesn’t need 3rd party cookies that are required to collect data for behavioral advertising. Some numbers even suggest that “45% of publishing executives saw no significant benefit of behavioral ads versus contextual and 23% said that behavioral ads actually caused a 23% decline in revenue” (Forbes). It seems that this type of adverting may even be more cost efficient according to a study done by AdAge. This just validates that there are good reasons to shift to this type of ad space as privacy laws get stricter in the coming years.
