Contextual is the key.

What will we do without cookies? This is a question that many advertisers are thinking about lately. Even some media point out that cookie restrictions will affect Real Time Bidding in a negative way.

Nevertheless, studies indicate the opposite: programmatic advertising and RTB will continue growing in the following years. As an example, an eMarketer report estimates that about 88% of the ads in the United States will be bought through programmatic buying by 2021.
Also, when it comes to cookies and online privacy, there are already appearing some solutions to let brands reach their target audience using relevant ads. As we mentioned in one of our posts, both IAB and some advertisers are looking for alternatives related to the recollection of user data. 

Segmentation: contextual VS interest.

With the arrival of Big Data, advertisers started to segment by interest, this is, depending on the behaviour the user showed on the web. In cases like this, the ad would appear independently of the topic of the website. For example, if a customer had shown interest in buying food for dogs, the ad of the dog's food will appear even if the person is reading a piece of news about politics in that moment.
 
It's that so, that according to a report by IHS Markit from 2017, 86% of the programmatic ads in Europe used information about the users' behaviour. 
 
Whatever the final solution might be, the restrictions in the use of user data are making that some forms of segmentation receive more relevance- such is the case of contextual. When segmenting using this type of criterion, we do it depending on the topic of the website the user is visiting. 
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In case we don't have any information about that person, we'll know that s/he is interested in, for example, renting a vehicle if s/he visits vehicle renting websites. On the other hand, if a user is looking for camping products we'll know that, apart from a tent, s/he migh be interested in a sleeping bag, insect repellent, mats and camping stoves. 
 
In this aspect,It's important to mention that contextual segmentation has evolved, which means that it's possible to segment more and better the type of pages where the ads appear. 
 
Next, we'll take a look at the five ways in which, according to The Drumcontextual can be a great way to segment in programmatic advertising.

The 5 keys of contextual.

01 Improvement in the use of keywords.

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The technologies used nowadays to do contextual allow to take into account the website as a whole and its context , making it possible to determine its suitability for the brand. Even though before advertisers could use blacklists to exclude some keywords or websites, this was a measure too open and not too effective. 

For instance, a cleaning product could include in the blacklist the word "drug" to avoid appearing on pages with that type of content with which it doesn't want to be related to. However, thanks to the new technologies, it's possible to take into consideration the whole context so that the ad can be shown on "drug stores" websites.

02 Trend analysis.

Technologies used in contextual also allow to know the trends that are of interest to consumers, something very important when it comes to develop marketing strategies during specific dates such as Christmas, sales season, etc. 

In this case, brands can use contextual predictive segments, which are updated through artificial intelligence and machine learning tools. Like this, it's possible to obtain keywords from the trendiest content to optimize the ad campaigns.

03 Campaign optimization according to results.

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Even when using contextual, it's possible to optimize campaigns based on the results that the brand wants to achieve (lower CPMs, reaching a certain amount of customers, etc.). How? Programming it so that it builds segments that achieve the desired objectives based on the performance of previously used segments.

04 Variety of formats.

New technologies will allow contextual advertising to go beyond just being text on websites, making it possible to make video, audio or image ads. 
 
This way, these tools will allow to categorize the content from video publishers so that advertisers can have their ads shown on OTT (Over the Top), CTV (Connected TV) and other digital video channels.

05 Leverage the contextual segments based on audience.

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Some brands are already using tools to connect 1st and 3rd Party Data with intelligent technologies that allow to know the segments better based on context , making it possible to impact their target audience. 
 
This way, it's possible to identify contextual terms and segments that work and that are based on existing data.
There's always some solution for the different challenges that emerge every day in the digital environment. As we've seen, contextual offers many advantages when it comes to reaching our target audience and optimize our video or display campaigns. 
 
Therefore, we can easily say that contextual is standing strong.
 
RTBMind is a DSP that allows advertisers to build and manage their own RTB campaigns, with the great advantage of not having a minimum access fee. If you want to know more about RTB, don't hesitate to contact us.