Contextual Versus Behavioral Advertising: Which Is Which?
Most web browsers are slowly slipping away from third-party cookies, and no one can deny that it caused quite the turmoil in the advertising industry. No wonder various marketers and advertisers are constantly searching for alternatives to reach consumers. Evidently, behavioral advertising can now be considered a challenge because it leverages cookies — leading to a favorable edge for contextual advertising.
To give you a more defined context of contextual advertising versus behavioral advertising, let us first coin the term of the two:
What Is Behavioral Advertising?
Behavioral advertising, also known as audience targeting, targets web-browsing behavior that lets the marketers and advertisers show relevant ads and tailored marketing messages to consumers. When an advertising network collects the consumer's browsing history, searches, clicks a link, and the like, cookies are stored. Then, the collected data from the cookies will be interpreted and utilized to deliver related content.
In a more specific context, behavioral advertising looks into a user's behavior to understand what kind of ads are relevant to them. When users conduct a behavior, it will be tracked as they surf the web and eventually receive content based on their activity.
Advantage Versus Disadvantage of Behavioral Advertising
As mentioned, behavioral advertising tracks the user's activity by collecting various information such as demographics, website visits, searches, and the like. In return, users will receive highly customized and relevant ads prompting an increased percentage of purchases. However, various consumers expressed their fear about data collection, thus raising several third-party cookies issues which will drastically change effectiveness in the near future.
What Is Contextual Advertising?
Contextual advertising is mainly about appearing at the right moment, at the right time, because ads will only be displayed on the web page relevant to it — meaning it is focused on the website's content. Getting started with contextual advertising, you need to select the appropriate topics and keywords. Then, the chosen topics and keywords will be utilized to correspond with a web page the user is viewing.
Advantage Versus Disadvantage of Contextual Advertising
Since specific keywords and topics will be utilized, brands are assured that their ads will only appear on a webpage related to them. Not only will it encourage interested consumers to check out, but it will also promote brand safety. The brand will not be displayed on an unrelated webpage that may tarnish its identity. However, contextual advertising can be costly and requires the assistance of experts.
Contextual Advertising Versus Behavioral Advertising
The difference between contextual advertising vs. behavioral advertising is about their method, while both of them have only one goal, which is to convert a prospect into a sure buyer. Behavioral advertising focuses on the user's past activities to deliver relevant ads, while contextual advertising display ads related to the web page's content. It's more like former activities vs. current interests of the consumers.
If you're going to look at it closely, contextual advertising is much recommended for CTV. Aside from not utilizing third-party cookies, it also offers a wide range of opportunities leaving the consumer feeling safe and not exhausted from irrelevant ads.
Final Thoughts
Contextual advertising versus behavioral advertising both have pros and cons, depending on the goal of your advertising strategy. Today, contextual advertising can be a better option because you won't have a problem with GDPR. You can also work with a precise process that values brand safety. However, behavioral advertising focuses on retargeting, which contextual advertising lacks; that is why it is essential to check your advertising goal to see which will fit the best in your criteria, but you also must remember that you should still be open to alternatives.
The views and opinions expressed are solely those of the contributor and do not necessarily reflect the official position of the ANA or imply endorsement from the ANA.
Zack Rosenberg is the founder and CEO of CatapultX.