Contextual and Programatic Advertising

Advertising is the basic marketing strategy to gain popularity, for any business. It needs to be the backbone of yours too. In ecommerce both contextual and programmatic advertising have a significant role to play. Programmatic advertising is a large contributor in terms of revenue to the digital advertising market. It helps you to decide which platform is best suited for your ad. Programmatic advertising is nothing but automated buying and selling of online advertising.

Programmatic advertising helps to deliver the right ad to the right people at the right time. “Computers and algorithms make the ad buying, placement and optimization process more efficient, remove mundane activities and cut down on time to market.”

In Contextual advertising the ads that are used are relevant to the content. This is not an entirely new concept because print media was always using them in magazines and newspapers. Many a time you may have noticed that ad for an air conditioner was placed strategically close to an article on global warming. The difference between advertisements in the print media and digital advertising is that contextual ads are fully automated, powered by algorithms. The manual efforts of designing have been done away with and all contextual advertisements are reliant on automation. They target audience by studying their online behavior, their browsing history and shopping pattern. Interestingly print media today also uses the same contextual ads but powered by automation because it is useful for specific content. The world of advertising thus changed with the advent of the internet and its subsequent sophistication.

Contextual advertising is said to help improve on the intent to purchase by 60 % or more because it is mainly based on the actual interest of the shopper.

This type of digital advertising with behavioral targeting is slowly becoming a big challenge especially in European countries with stringent data protection laws for the citizens. When no personal data can be used without the prior permission of the user, it will be a difficult scenario for the ones placing the ads but a better world for the consumer in some ways. This is because he will not have to worry about his online presence being compromised or the fear of being watched constantly. Contextual targeting gives a partial relief to advertisers and those using the ads because they are content specific and not reliant on the use of personal data.

Contextual targeting is becoming popular day by day. When personal data is used if the question of taking consent arises, no user will agree. As a result ad blockers had come into existence and so contextual targeting gained popularity.

How does it work?

Firstly content and placements are categorized when the URL on the website is scanned by a web crawler.

Secondly when a user is on the page the URL information is passed to the ad server. It now matches with the data from the web crawler to provide the right match to relevant topics/ keywords/campaigns.

Contextual targeting is beneficial because it does not breach privacy laws. The use of personal data is kept to a minimum and it is safe in terms of regulation. Contextual advertising is said to be more positive and said to complement the content because they are based on content rather than browsing history. The chances of response are higher because it works on the basis of user interest.

The few challenges here are that precise targeting is not always possible and therefore competitor’s ads may take up your slots if one does not pay close attention. Again a user may not convert into a buyer just because he is browsing. It could be simple interest or plain curiosity.

It is thus advisable for businesses to take the help of an ad tech company to have a complete solution for advertisement problems.

Where Programmatic Advertising is concerned it is important to know that it is powered by Machine Learning. Algorithms help to analyze user behavior as well as campaign inputs so that real time campaign optimizations are made and audiences who are likely to convert are identified and targeted. As a result the ratio of success for the campaign multiplies due to the various types of data that surface.

It is machine learning and automation once again that helps businesses to reach meaningful audiences through Programmatic advertising. It effectively channelizes new opportunities by using data and demographics to reach the targeted markets. Online consumers are identified through geography, demographics, time of surfing, personal interests, behavior, the device that they use to surf and even the weather. Real time data thus helps in identification of what is the best audience for the campaign. They then buy digital inventory to boost the same. The performances are thus optimized through intelligent connections and meaningful insights.

Programmatic advertisements help both sellers and buyers to take data-driven decisions which are beneficial to both. It is cost effective since machine learning is used to optimize the entire process. Technology creates efficiency and there is better targeting.

Both Contextual and Programmatic advertising are here to stay. It is in your best interest to make use of them. Use contextual advertising to complement programmatic advertising. Otherwise you lose out on the potential to save on revenue, and improve the efficiency of your online advertisements and campaigns.

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