With rising concerns over data privacy and the decline in traditional tracking methods like cookies, advertisers are tapping into the power of contextual advertising. 

What is contextual advertising?

It’s an approach to targeting that uses contextual metadata and advanced AI to place ads that perfectly match the viewer's content. By analyzing video elements such as objects, people, audio, and overall mood, the AI can understand what's happening in the scene and seamlessly insert ads that feel relevant and engaging, making them more impactful for the audience. 

AdAge reported that 78% of advertisers are planning to either increase or maintain their use of contextual targeting in 2024 – and one platform that’s seen a significant rise in the application of contextual advertising is Connected TV (CTV).

This blog explores how contextual advertising provides a more relevant and non-intrusive experience for connected TV (CTV) viewers, while also delivering effective results for advertisers.

The 6 benefits:

Contextual advertising on CTV is a powerful tool for advertisers looking to reach their target audiences in a more engaging and relevant way. Here are six key benefits to consider:

1. Increased Relevance and Resonance: Unlike traditional TV ads, which are often shown to everyone regardless of their interests, contextual advertising matches ads to the content viewers are watching. For example, if someone is watching a cooking show, they might see ads for kitchen gadgets or food delivery services. This relevance makes the ads more engaging and resonant with the audience – and therefore more likely to elicit the desired action.



Not only that, but you avoid embarrassing pairings that clash or fall flat, such as an ad for sporting gear during a mid-afternoon soap opera, or a toy store promotion airing during a police drama.


2. Improved User Experience: Since the ads are tailored to fit the context of the content, they feel less intrusive and more like a natural part of the viewing experience. Viewers are less likely to be annoyed by an ad for a sports drink while watching a sports event compared to an unrelated product – say a pharmaceutical ad – leading to a more positive reception.


3. Higher Impact: When ads are contextually aligned with the content, viewers are more likely to pay attention and remember them. Research indicates that context can increase the ability to remember by 40%. When people remember your ad, they are more likely to take action.
 

4. Better Brand Safety: Contextual advertising helps to ensure brand safety by placing ads in appropriate and relevant content. Marketers can avoid their ads appearing next to controversial or unsuitable content, protecting their brand's reputation. Contextual advertising also helps to avoid negative associations with your brand, and ensure placements align with the brand characteristics you want people to remember.


5. Flexibility and Real-Time Targeting: CTV offers the flexibility to adjust and target ads in real-time based on the context of the programming. This adaptability means you can respond quickly to changing viewer interests and trends, and make sure your messages are always timely and relevant.


6. Data Privacy: Contextual advertising offers a privacy-friendly approach to advertising, as it places ads based on the content being viewed rather than the person viewing it. This approach respects user privacy by not tracking individual browsing habits and,  instead, focusing on the context of the media to deliver relevant ads.

Given the many benefits of contextual advertising, it’s no wonder CTV advertisers are increasingly using it – 83% of CTV advertisers surveyed by Advertiser Perceptions and Premion said contextual targeting is somewhat or very important!

What about all that great first-party data? Don’t worry – you don’t have to throw it out. You can use it to segment audiences, then apply contextual targeting to serve ads that align with the content that users are watching. The synergy between these two strategies allows advertisers to deliver highly personalized and timely messages, improving user engagement and campaign effectiveness. 

Unlock the Power of AI-Driven Contextual Targeting with Anoki

Studies have shown that AI-driven contextual targeting outperforms traditional methods by a factor of four – and ads using it achieve a 300% higher aided brand recall compared to those targeted with standard demographic data and basic publisher-declared metadata alone.

So, what are you waiting for? Contact Anoki today to learn how its contextual targeting solution, ContextIQ, can help you deliver highly targeted, perfectly timed CTV ads that drive conversions.