Contextual targeting is a type of user targeting where marketers use ads or messages that are contextually-relevant to the user. It means if a user is looking to buy a particular product such as a mobile phone, personalized ads or messages related to the phone are shown to him/her. Before the advent of third-party cookies, contextual targeting was quite popular among digital marketers. Now, as the martech world slowly moves away from third-party cookie-based targeting, the attention has shifted back to it.
There are however some common misconceptions that marketers need to be aware of when it comes to contextual targeting.
3 Common Misconceptions of Contextual Targeting
1. Contextual targeting is nothing but keyword-based targeting
Contextual targeting is not targeting users based on a bunch of keywords. This was the case in the past where keywords were the go-to strategy for digital marketers. If a user searches for a product with a particular set of keywords. The algorithm shows an ad related to those keywords. Many companies still employ this type of targeting.
But today, the focus has shifted to 1:1 personalization or hyper-personalization. Consumers want brands to understand them deeply and not just target them with random ads that aren’t contextual in nature. For example, a user who has purchased a brand new Macbook from Amazon will be more interested in ads that focus on accessories such as a USB hub or a mouse or a laptop case, etc. He wouldn’t be interested in ads related to Macbooks as he has already bought one.
2. Contextual targeting doesn’t mean past behavioral or purchase data
Looking at the purchase or behavioral history of users is a great way to target them. However, contextual doesn’t mean delving only on past data. It also means real-time targeting. Users want a personalized experience that happens in real-time. For example, a banking customer who has visited the home loans page of his bank multiple times is clearly showing intent to apply for it. A personalized message related to home loans in real-time on his/her preferred channel will resonate really well with that customer.
3. Contextual targeting and ID-based targeting are different
Contextual targeting plays a big role in ID-based targeting. In fact, it’s more of its subset. With the deprecation of third-party cookies, ID-based targeting will be pivotal in driving personalized campaigns for users using their first-party data. If this data can be collected from disparate sources and unified, it helps marketers in understanding the context behind a customer’s or prospect’s need and want. Tools such as Customer Data Platforms can immensely help in the unification of first-party data and activating it across various marketing channels.
To Sum Up
With the arrival of innovative tools such as CDP, contextual targeting has seen a whole new meaning from its earlier keywords-based approach. A contextually-relevant message is more capable of increasing a user’s digital engagement and conversions than random keywords-based ads or messages. Understanding customers intimately goes a long way in targeting them with messages that resonate well and deliver value. And with the help of AI, this can be done at scale at a whole new level.
Contextual and 1:1 personalized targeting is the future of the marketing industry. If you would like to know how you could leverage a Customer Data Platform to facilitate this, do get in touch with us.
By Bijoy K.B | Senior Marketing Manager at Lemnisk
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