Using contextual marketing, mobile marketers want to reach their most valuable consumers in order to maximize the impact of their advertising spending. They don’t just throw their ads out there and hope for the best. That has become more challenging due to new privacy restrictions and the waning popularity of sources for data collecting like IDFA, but there are still options.
In order to match ad creative to the appropriate audience while maintaining user privacy, contextual marketing is a potential method. This article will examine contextual marketing’s operation and the data elements that have the biggest bearing on the success of advertising campaigns.
Table of Contents
What is contextual marketing?
While it’s safe to say that the majority of marketers recognize the value of content marketing, contextual marketing is still a part of marketing that receives less attention.
Whether or not you are familiar with contextual marketing, we are prepared to wager that you want to send the appropriate messages to the appropriate customers at the appropriate time. Contextual marketing is all about doing that.
Here, we’ll explain the idea of contextual marketing and explore the approaches you may take to include it in your overall marketing plan.
What does contextual mean in marketing?
An online marketing strategy concept called contextual marketing involves serving customers with relevant advertisements based on their recent browsing activity or search phrases.
Advertisers want to lessen user dissatisfaction with internet marketing and, at the same time, enhance clickthrough and conversion rates by linking the advertising users see to their expressed interests.
For instance, there can be advertisements on the website for cosmetics and other fashion items if a reader is reading an article about beauty advice. Instead of focusing on the user’s past, they are presented based on where they are right now.
Instead of gathering user data to produce targeted adverts, contextual advertising allows publishers to develop a strong marketing strategy based on the relevance of the surroundings.
How does contextual marketing work?
Utilizing behavioral targeting strategies, contextual marketing shows the target audience members relevant or contextual adverts depending on their interests. We’ll give an example to show you what we mean.
Imagine a mobile site user looking for mid-size automobile reviews, reading one or two reviews before moving on to an article on models with high fuel efficiency. The user may then see advertisements for mid-size, hybrid autos on a news website.
The user may think that relevant adverts appearing on seemingly unrelated websites is just a coincidence or even synchronicity.
A third-party cookie stored on the computer tracks each time a user conducts a search, reads an article or clicks on an advertisement. This information is used to compile a behavioral profile of the user for marketing purposes.
Contextual marketing is no longer just for computer users. It’s also important to note. Users who access websites from a cellphone or mobile device can also accomplish this.
Content and contextual marketing
In a nutshell, contextual marketing is the practice of scheduling communication to be most relevant; it involves delivering the appropriate material to the appropriate prospect at the precise right time. Because timing is a factor, it goes beyond content marketing that merely provides enlightening or practical information. The distinctive personality of the client is also taken into consideration when comparing contextual marketing to content marketing. You could lose a lead even if you have two of the components in place because they are the wrong audience.
Because it helps you to give leads a more customized experience, contextual marketing is crucial to any online marketing approach. Because you are providing prospects with more current, pertinent information, your current advertising campaigns will actually be more successful.
Making great buyer personas is essential since contextual marketing and content marketing require getting personal with your leads. By doing this, you can more easily include the appropriate content into the three contextual marketing pillars of relevant information, the appropriate audience, and the appropriate time. Focus on questions that connect to these components as you construct your various personalities, and you’ll be more successful in grabbing and holding your prospect’s attention.
What does contextual segmentation mean?
Targeting people with contextual segmentation involves leveraging contextual items and information that is already known about the context to identify a segment based on that context. Then, at a time that is situationally appropriate, we can present a contextual offer to the appropriate audience. In e-commerce, when competition is close at hand and search costs are minimal, it is essential to correctly predict client purchase behavior in order to provide more specialized and individualized goods and services.
Recent studies have shown that, especially when investigating individual customer behavior, incorporating the context in which a transaction takes place in customer behavior models enhances their predictive ability. Companies may, however, choose to concentrate on sectors rather than on specific individuals due to a number of operational and managerial difficulties.
What are the basic concepts of contextual perspective?
The contextual approach takes into account how people interact with their social, cognitive, and physical environments. It also looks at how the environment and sociocultural factors affect development.
The importance of contextual marketing
Spending on contextual advertising will increase annually by 13.3%, predicts Statista. The reasons why this technique is so promising and how it can help you grow your business are covered in this part.
Contextual marketing’s key benefit is that it gives audiences personalized and pertinent material. According to Slideshare, 80% of people are more willing to make a purchase from a company that guarantees a personalized experience. As a result, contextual marketing enables businesses to draw in more customers by providing unique experiences. Because they provide the products that users are now in need of, contextual advertisements are not obtrusive.
Why is contextual marketing important?
Contextual marketing is economical since it enables companies to increase sales by just showing them relevant adverts. You can cut costs by not promoting advertising that doesn’t cater to user wants. Contextual advertising’s effectiveness is simple to gauge, so you can adjust your approach as needed.
Now you know why a growing number of companies use contextual marketing to promote their goods. Let’s explore the advantages of this kind of promotion in more detail.
The benefits of contextual marketing
Some of the most popular contextual ad customers are technology businesses, internet shops, and travel agencies. Contextual marketing can be used by any company seeking a higher return on investment (ROI) for digital advertising.
These are the essential benefits of employing a contextual marketing strategy:
- Higher click-through-rate
- Higher ROI
- Specialized content
- Improved CX
Based on the customers’ needs and preferences, contextual marketing displays the appropriate material for them. Customers are more likely to interact with digital advertising as a result.
Customers are exposed to marketing materials for products they are more likely to purchase through targeted advertising, which boosts sales for businesses. E-commerce businesses depend on this type of online advertising as a result.
The term “buyer persona” describes the ideal consumer for a specific product. A business can create a marketing campaign after defining the buyer persona by looking at customer demographics and online behavior.
Customers will get highly tailored advertising that is relevant to their interests, thanks to contextual marketing. Better user experience and higher customer satisfaction are the benefits of this.
The challenges of a contextual marketing campaign
There are some challenges to overcome when it comes to contextual marketing. We review some of those challenges below. These are the biggest challenges you’ll face when employing a contextual marketing campaign:
- Security and privacy
- Wrong targeting
- Standardization issue
Security and privacy
Cookies are used in contextual marketing to monitor a customer’s web surfing behavior. Some clients might perceive this to be an infringement of their privacy and not feel comfortable with it. Recent laws requiring user consent before collecting information using cookies include the General Data Protection Regulation and the California Consumer Privacy Act.
Contextual marketing depends on looking at a customer’s browsing history, so there’s always a chance that the targeting will be off and ads will be delivered for websites that aren’t relevant.
Since contextual marketing is still a young area, there is no one-size-fits-all method for implementing it. Because of this, it may be challenging for firms to decide how to employ contextual marketing most effectively. The risk of noncompliance can also increase with improper use.
Despite these difficulties, contextual marketing is still a formidable tool with a lot of potential for companies wanting to increase ROI for their online commercials.
Contextual marketing examples
Below we are going to share some important contextual marketing examples. These companies were able to carry out successful campaigns using contextual marketing instruments:
Waze and Taco Bell
Taco Bell and the well-known GPS navigation service Waze have a collaboration that serves as a great illustration of contextual marketing. An advertisement for Taco Bell appears in the Waze app when a user approaches one, informing them of a discount at the right time and place.
Tesla, Inc., a company founded by Elon Musk, is a contemporary contextual marketing pioneer. Tesla outsold Mercedes-Benz despite spending significantly more on advertising than other automakers like Mercedes-Benz. This is just because Tesla has a conversation with customers about leading a fossil fuel-free lifestyle, forging a crucial connection that has generated a significant amount of brand loyalty.
An outstanding illustration of contextual marketing success is Amazon. Its well-known recommendation system proposes goods that go well with the items we’ve added to our cart. When the item we’ve been contemplating is on sale, Amazon will send email reminders. Additionally, if you’ve bought a book from a specific author, Amazon will notify you when that author releases a new book.
Johnson & Johnson
The skincare line “Clean & Clear” is offered by Johnson & Johnson, an American manufacturer of pharmaceuticals and consumer goods. Teenage females make up the target demographic for Clean & Clear goods. Teenage girls in today’s society rarely comment on websites or blogs. They are more inclined to interact with visually stimulating, easily shared content.
Teenage girls might send each other shareable electronic postcards as part of Johnson & Johnson’s Clean & Clear contextual marketing effort. These digital postcards included links to a free skin examination and Clean & Clear samples. In order to urge ladies to send the postcards to as many of their friends as possible, the contextual marketing campaign had viral effects. The advertisements offered Johnson & Johnson a low-cost means of positioning their product in front of the appropriate consumer base at the appropriate moment.
Contextual marketing technologies
The days of a generic ad unit following you across the internet and genuinely espousing the merits of a product you have already bought are over. Paint-by-numbers marketing will give way to complicated artwork, and creative advertising fueled by rich contextual data will reshape the relationship between brand and customer. From personalized advertising to humanized advertising, we will observe a progression.
As we’ve stated, we think that integrating first-party data with conventional contextual targeting techniques (or a powerful replacement like disclosed social data) can increase the strength of both and produce a potent solution for the cookieless era. For instance, FiftyAurora powers next-level contextual targeting while fully adhering to privacy regulations.
Current contextual targeting just considers the content of a webpage or media item, which can only be used as a crude approximation of the target market. And the key to any advertising is understanding audiences, something we have forgotten in the midst of relentless consumer surveillance. Because FiftyAurora is driven by a human insight platform, which enables Fifty to analyze the audience’s content choices, interests, and other real-world signals like location or gender, it overcomes this drawback.
Instead of being constrained by an unclassified keyword list, by first analyzing an audience, we can utilize this analysis to model the pertinent themes, categories, and web pages that a campaign should be targeting for a particular audience.
FiftyAurora brings desired audience targeting beyond the campaign’s primary theme or target interest to incorporate related but unrelated issues that also interest the audience. This increases audience reach without compromising audience relevance.
Contextual marketing tactics will benefit in the future from these kinds of technologies.
Digital marketing campaigns allow for the globalization of contextual marketing. Contextual marketing is used by businesses to deliver outstanding customer experiences with material that is user-driven by data. With the help of this tactic, contextual marketing can win over customers and establish deeper bonds with them.
With contextual data, buy paths, and personas, contextual marketing may also benefit from the power of digital marketing. Content placement, referral sources, social media sharing, and industry-specific case studies from firms that have employed contextual marketing are a few things to consider while promoting using this strategy. Your business will start to comprehend what it takes to satisfy the needs and goals of your target customers after you get the hang of contextual marketing.