Is Contextual Targeting Worth It?

Contextual targeting is one of the biggest buzzwords in advertising. It’s touted as a low-cost advertising solution that better targets customers. And the proof is out there―customers are 50% more likely to click ads that use contextual targeting than other ad types.

But how does this strategy work in the realm of paid advertising? Is it worth it?

 

What Is Contextual Targeting?

Contextual targeting is an advertising strategy that uses personalization to target leads. So, your ads show up at the right time, only appear when your customers are looking, and show them the content they want to see.

This means your ads will appear on relevant websites and SERPs. This tactic differs from strategies like PPC, where you continue investing in keywords and ad placements with no return guarantee.

With this method, you don’t have to optimize your search terms. You join a contextual ad targeting network and enter the topics and keywords that best represent your brand. Google then displays your ads on other websites that match your topics, keywords, location and language.

 

Contextual Targeting vs Behavioral Targeting

Behavioral targeting is another tried-and-true advertising tactic. This method targets consumers based on their online activity. A technology called Pixel monitors a user’s browsing history, such as the websites they visited, search queries they entered, and even the items they purchased. Pixel uses this data to show consumers relevant ads.

Retargeting is the perfect example. Let’s say a user visits a website, hops on social media, and is bombarded with ads for that website. You can use retargeting to target your ASINs and deliver ads to prospective customers.

Showing users relevant ads is always an effective strategy. That said, you should know that behavioral targeting collects and analyzes data and behavior to work. This strategy can be intrusive and comes with serious privacy issues.  

Contextual targeting uses the same idea but doesn’t come with intrusive behavior monitoring. It could prove a better option, since many consumers are uncomfortable with having their behavior and data used for advertising. 

This advertising strategy only monitors the content on a website or keywords in a search query, and the ad is placed on the site or SERP. Shoppers still see relevant ads without their data and behavior in the hands of advertisers.

 

Amazon Contextual Targeting

Because of its success, Google isn’t the only platform to use this advertising method. Amazon has implemented more contextual targeting opportunities for sellers to attract more buyers.

Sellers can use different strategies to have their ads appear on Amazon content and third-party websites. Currently, sellers can use product categories and ASINs to match products to content.

This strategy has different benefits. Not only does it improve ad relevancy without privacy concerns, but it also aids the buyer’s journey. 

During the awareness stage, customers research solutions to their needs and identify the product to solve their problems. Your ads will appear on websites that offer this information, so buyers don’t need to search for the perfect product.

 

Is Contextual Targeting Worth It?

Even though it has many benefits, you may wonder if this strategy is right for you. If you’re looking to put your brand in front of a relevant audience, contextual targeting is the tactic you’re looking for. 

For most brands, contextual targeting engages their audience. Sellers can target relevant keywords to ensure these ads appear on websites they likely frequent. 

Amazon already implemented this tactic, and other e-commerce platforms will follow suit. Since there are few privacy concerns, contextual targeting will become a more popular ad strategy in the future.

 

Benefits of Contextual Targeting

Many sellers will see results when they implement contextual targeting. But why is that? Here are the advantages of this ad type.

 

Increases Visibility

Contextual targeting not only increases visibility but also enhances brand awareness among your target audience. 

As stated previously, contextual targeting aids better in the buyer’s journey than behavioral targeting and other advertising methods. When consumers discover your products offer the solution they need, they will become loyal to your brand.

This isn’t a bunch of fluff. there’s a science to contextual targeting. This technology uses sentiment and emotional analysis to ensure your ads meet user needs. 

When your audience sees a well-crafted ad, they will feel compelled to visit your website or will return to your store when they’re ready to purchase an item.

 

Increases Conversions

Since contextual ads appear in the content that users consume, you’ll better engage your audience. 44% of consumers admitted they tried a new brand after finding an ad with the content they enjoy. 

This will help increase conversions, or the likelihood that a buyer will hop on your Amazon store and purchase a product.

Since Amazon is expanding its contextual targeting strategy, your ads can appear outside Amazon―on podcasts, blogs, and videos.

 

Drives Sales

If you’re trying to hit serious sales goals, you’ll want to invest in contextual targeting. Since your ad appears on websites, SERPs, and apps that your customers frequent, you’ll experience a surge of conversions and traffic. This will lead to more sales and revenue.

 

Affordable

Contextual targeting is one of the most cost-effective advertising tactics. In one study, the average contextual targeting CPC was 0.80 cents. Compared to behavioral targeting, which costs an average of $1.53, contextual targeting is easier on your advertising wallet.

 

Better Targets Your Audience

Contextual targeting is effective because these ads resonate with your buyers. In one study, skippable contextual ads outperformed other ad types by 70%. Why is that? 

Contextual ads offer value to your prospective buyers, and this strategy is more effective at targeting your audience. All of this increases the chances that your audience will take action.

 

Personalization

Personalization is one of the most important ecommerce strategies. 60% of buyers think they will become repeat customers after a brand uses personalization. Personalization builds better customer relationships since these tactics give your online store a human touch.

There are many ways to personalize your marketing and advertising campaigns, and contextual targeting is one method. You can craft ad messages tailored to the content they’re consuming and use location-targeting if your biggest audience is local.

 

Easy to Implement

It’s easy to set up a contextual targeting campaign. Many ad networks allow you to create ads, enter some basic data about your brand, and put the ad out there. For example, to do contextual targeting on Amazon, you’ll need to join their Amazon DSP network.

 

It Doesn’t Use Cookies

You can host a successful contextual targeting campaign without risking your customers’ digital privacy. Contextual targeting aligns with many global privacy laws since advertisers rely on valuable content instead of consumer online behaviors.

Contextual Targeting Strategies to Try

Implementing your first contextual targeting campaign can be challenging. Here’s a breakdown of the different strategies you can explore:

Keyword-focused. When your ad targets keywords, Google will crawl different websites and place your ads on those that use your search terms. For ecommerce brands, this tactic will require keyword research on Amazon.
Category-focused. This strategy places your ads on websites that cater to broader categories, such as automotive or tech. While this is beneficial if your business has several products, you risk your ad appearing among unrelated content.
Semantic-focused. This strategy uses machine learning to understand your content and will match your ads to other websites based on relevancy.

 

Attract Customers With Contextual Targeting

Contextual targeting is becoming the new standard in advertising.

This strategy uses personalized content to attract leads, ans is  one of the best alternatives to behavioral targeting, which tracks a user’s online habits to better target them. It’s less intrusive and better targets a user’s pain points, which is why so many advertisers have seen success.

Amazon sellers who want to use contextual targeting can do so on Amazon DSP. If you’re new to advertising on amazon, it can be difficult to create a campaign. This is where our Amazon marketing agency comes in. 

We can help you create campaigns that align with your goals and target your niche buyers. Click here to learn more about our services.

 

Author

Stephanie Jensen has been writing ecommerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.

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