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Illustration by Francesco Zorzi.
The world has gotten wise to the automated tricks of online advertising, and that means businesses have to get personal to earn the trust of consumers. Improved technology and the passage of privacy laws like the EU's General Data Protection Regulation (GDPR) make contextual advertising the popular choice for brands around the world.
According to GumGum's new report, "Contextual Advertising: The New Frontier," contextual advertising is gaining ground from other kinds of audience targeting. The report, which is based on a survey conducted by YouGov, found that almost half of all U.S. businesses rely on contextual targeting methods, and nearly one third of UK businesses use it.
One reason for this popularity is simple: It helps brands associate with higher-quality content, which builds trust and loyalty with consumers. And to help create and protect brand images and brand safety, new AI technological tools such as computer vision (aka image recognition) have made it possible to see the full context of what internet users see on a page, which opens up advertising opportunities on sites that highlight a product, brand, or topic through an image or gallery rather than text.
These are just a few of the changes that are already being implemented, and more innovations will be keep coming. Businesses are adding contextual advertising to their mix of strategies, and it's been paying off. There is already plenty of evidence that customers respond well to this approach. Privacy and information security are only going to become more important, so the time to get creative about contextual advertising is now.
Download the report for further insight into how context has become the new paradigm in advertising.