Contextual targeting: the cookieless superstar?

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Even though Google has once again averted the end of 3rd party cookies after a long back and forth, alternatives are still on the rise. This is not least due to the fact that companies are increasingly moving away from a dependency on the internet giant and increasingly want to rely on more data protection-friendly alternatives. One way of addressing target groups without the use of cookies has been experiencing a real revival for some time now: contextual targeting.

Even though contextual targeting has been available for over a decade, it has only really been able to realise its true potential for understanding correlations in recent years. The continuous development and optimisation of contextual targeting through the use of AI and machine learning now makes it possible to address target groups not only on the basis of website context or thematic contexts, but also through semantics and sentiment.

This has not only resulted in enormous efficiency gains for advertisers, but is also reflected in rising expenditure on this technology. According to the American platform silverpush global spending on contextual targeting in 2023 was the equivalent of around 208 billion euros. This expenditure is expected to double by 2030.

Why contextual targeting is moving into the spotlight right now

While behavioural targeting involves extensive data collection and analysis, for example in the form of cookies, contextual targeting does not require any personal data at all and thus protects the privacy of users, preventing violations of applicable data protection regulations such as the GDPR from the outset.

In addition, contextual targeting emphasises the relevance of advertising in the immediate environment of the content currently being displayed, whereby an ad is placed thematically in line with the content currently being consumed and can thus arouse genuine interest. The synchronisation of ads with the content displayed is often reflected in this way by greater engagement and increased click rates, which increases the effectiveness of advertising campaigns and thus leads to a more favourable return on investment (ROI). Contextual advertising is therefore a cost-effective strategy that combines precision and effectiveness.

Louis Seimel, Senior Partner Manager at Virtual Minds, adds: ‘Another advantage of contextual targeting is that it can reach prospects who might not have fallen into the target group in a cookie-based campaign because they don’t fit the typical demographic, such as female anglers or young newspaper readers.’

Especially now, in a time of change and the search for cookie alternatives, data protection compliance and efficient targeting are crucial features for future-proof solutions, which explains the current popularity of contextual targeting among advertisers.

This is also underlined by a DoubleVerify study from 2020. It showed that the majority of users are receptive to adverts that are related to content they have just consumed:

  • 69% would be more likely to view an advert if it was relevant to the content they were reading
  • 67% said they are open to relevant adverts from new brands
  • 44% have tried a new brand because they saw a relevant advert next to content they were consuming

Contextual targeting compared to behavioural targeting

Contextual targeting provider: Who is the super talent?

We explored this question in two webinars in September in the form of elevator pitches, moderated by our VP Account Management Marc Krückemeier, in which a total of seven of our contextual partners presented their individual solutions. Of course, it is not possible to give a clear answer, as each provider pursues different approaches and areas of application and it depends on the needs and goals of the customer. Nevertheless, the webinars provided a valuable overview of the possibilities as well as the similarities and differences between our partners.

Did you miss the webinars or would you like to watch a specific partner again? No problem! We have the recordings for you here: 

Elevator Pitch 1 – Cronbach, emetriq, hyScore and OS Data Solutions

Elevator Pitch 2 – ablida, Semasio and Qwarry

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