How contextual AI is rewriting the rules for digital advertising

Contextual advertising dates back to the early days of the World Wide Web, an era when print media was still king. In recent years, contextual has seen a renaissance as privacy regulations have led to the delayed deprecation of third-party cookies, leading to the search for must-have measurement alternatives. Enter contextual artificial intelligence. Unlike traditional targeting methods that rely heavily on historical data, contextual AI adapts in real-time to the environment and consumer behavior, offering a dynamic and responsive approach to ad placement. “As an industry we’ve focused a lot on the right person at the right time,” said Brian Danzis, president of North America for Seedtag, during an Ad Age panel on contextual AI during the Cannes Lions International Festival of Creativity. “But I think we’ve gotten away from the right moments over the years. Audiences are much more diverse these days, more nuanced. Marketers want to reach people beyond age and gender, and contextual allows you to do that precisely in that moment. It’s ultimately more effective.” Panelist Lauren Ogúndèkó, chief digital officer of Kinesso U.K., suggested that the resurgence of contextual advertising is due to its straightforward way of understanding what consumers want from advertisers, and “how you can engage with publishers on a much deeper level.” Danzis, Ogúndèkó and Jesh Sukhwani, director of Lenovo’s Global Media Strategy Center of Excellence, joined John Dioso, editor of Ad Age Studio 30, on the VaynexX yacht at Cannes Lions for an in-depth conversation on the state of contextual advertising, the promise of contextual AI and its impact on creativity. A global challenge Sukhwani mentioned that as a multinational corporation, Lenovo had a head start adopting contextual solutions in response to the different rates of cookie deprecation around the globe. “Very early on we looked at what we have in terms of our first-party data assets to be able to measure what content our users are looking at, but more importantly in what environment, the emotions and the sentiment that users are looking at,” he said. “So we can then overlay that with machine learning and artificial intelligence to be more accurate in targeting users.” The panelists agreed that generative AI has a significant role in optimizing creative content in real time based on the tone, tenor and appearance of an ad in the context of the article. “To measure the effectiveness, we worked with a company called Realeyes that uses eye-tracking technology to measure the human emotional response to that,” Danzis said. “And we found that it achieved four-times the attention and likability. It drove the awareness and consideration that this brand wanted, all because we focused on the right audience and the right moment, and we delivered a message that resonated in that environment.” However, Ogúndèkó also stressed the importance of human oversight in the process to avoid bias and ensure that the content aligns with the intended message. “I think we still need human context to steer the creativity,” she said. “We’ve got our own generative AI in our business, and I can rely on that to create the content for me. But if the human lens is removed from that, you get bias. You also get content that’s far removed from what you’re trying to achieve, because you don’t have human iteration.” Getting more nuanced The transition to contextual AI requires a shift from traditional behavioral targeting to more nuanced approaches. Brands must be weaned off behavioral targeting, focusing instead on consumer needs and contexts. “We’ve been testing campaigns over the last few years with great success and match rates,” Ogúndèkó said. “We try to tell clients they have to reset and rewire how they approach consumers today. Think about what they care about, what they want to consume and start to recreate content and products around those needs.” Sukhwani highlighted the importance of upskilling agency teams to understand and implement AI effectively, emphasizing collaboration with media partners for education and training effectively. “AI is different for all of us,” he said. “Is AI generative AI? Is AI an enterprise solution? Is AI campaign optimization? What is AI for you? An agency is confronted with all these different points. With our media partners, we go into the agencies and educate the agency-client teams on how AI is being implemented, and then train the machine to be able to make better campaigns.” The panelists concluded the discussion by predicting that AI will become more mainstream, and that generative AI will have a significant impact on advertising. However, Ogúndèkó sounded a cautious tone. “Contextual advertising will iterate naturally because there’s so much data that AI is constantly being trained on,” she said. “It’s going to get to the point where it can self-create. And we as people have to understand the technology to be able to put safe guardrails to mitigate any bias, anything that can stop the AI from becoming a challenge and a problem. Legislation issues abound. There’s so much that’s going to happen in the next 12 to 18 months that I don’t even think we’ve got enough time to get prepared.” From a consumer perspective, AI is going to be more mainstream over the next 12 months, Danzis predicted. “Where agencies and clients are really leaning in is at the strategic level at day-zero planning,” he said. “How do I think about where my competitors are? How do I understand consumer trends in real time and be able to react to that? How do I win new business? How do I uncover increased reach opportunities? The opportunities are profound at that strategy level, and that’s where I think AI can tell you something you didn’t know before or didn’t even think it was possible.” About Seedtag Seedtag is the leading contextual advertising company that creates highly impactful and engaging digital ads within relevant premium content, powering targeting and returns for top publishers and the finest brands. The company’s contextual AI, Liz, allows brands to engage with consumers within their universe of interest on a cookie-free basis. Founded in 2014, Seedtag has its headquarters in New York and Madrid, with a global team of more than 600 people and offices in EMEA, LATAM, North America and APAC.

How contextual AI is rewriting the rules for digital advertising

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