The advertising industry is looking at massive changes like strict privacy regulations and the impending death of third-party cookies. With these changes, effective targeting is on top of the minds of advertisers. These changes also offer advertisers to explore new ways, such as contextual advertising, to engage with consumers while respecting data privacy.
But how can the experiences in which consumers are engaged with content create new opportunities for brand engagement, positively impact their perceptions, and provide a unique new way to target people? And will people engaged with specific content in a particular moment be more receptive to contextual ads and have positive feelings about specific products or brands? To analyze these questions and understand customers’ feelings, Seedtag partnered with Nielsen to conduct a studyOpens a new window .Â
The following are the key insights from the study.Â
See more: 79% of Consumers Are Comfortable Seeing Contextual Than Behavioral Ads
Interest in an Industry Improves Following Engagement With Immersive Environment
The study found that when engaging article content was combined with relevant advertising, there was an increase in interest in the particular industry. According to the study, contextually engaged consumers were 2.5 times more interested in the industry than those with no targeting.
Ads and Industries Were More Positively Received When Presented Contextually
The study found that 72% of the respondents exposed to contextual ads liked them compared to 64% of those who saw demo ads and 66% of those who saw interest-based ads.
The study also found that consumers exposed to contextual ads were more “excited†about the industry than other categories of audiences. People exposed to contextual ads were 167% more excited than those who had no targeting and were 28% more excited than those targeted based on their interests. People who were contextually targeted also felt more “informed†than other categories. At the same time, people who were targeted based on their interests felt more “inspired†and “confident†than other categories.
With Contextual Advertising, People Are More Receptive to Ads in the Category
When people were exposed to contextual ads, they were 85% more open to seeing future advertisements than people who received no targeting. Further, contextual ads were considered more relevant, 60% more so than when no targeting was used and 15% more so than when ads were Demo targeted.
The study found a clear connection between how positively consumers perceived ads when they were contextual versus other targeting strategies. This positively impacted a brand’s perception.
People Exposed to Contextual Ads Are More Likely To Take Action
The goal of an ad is to inspire people to take action, like exploring more about the brand or making a purchase. People exposed to contextual ads were 2.5x more likely to take action than those who did not experience targeting. People seeing contextual advertisements were 32% more likely to take action than people who saw demographically targeted ads.Â
Further, about 40% of people exposed to contextual ads would talk about the product with friends and family. However, the actual act of purchase is a little more difficult for contextual ads to influence. People targeted based on their interests were slightly more likely to say they would purchase the product than people who saw contextual ads.
People Seeing Contextual Ads Desire To Discover New Products
The study found that having an interest in the broader industry/category positively impacts future actions. This is likely because they already know what they like in the category. Interest in the industry also outweighs other categories when it comes to browsing the industry online.Â
That said, people who saw contextual ads were 35% more likely to want to discover new products to consider purchasing, irrespective of whether they had a broader interest in the industry. This was more so than when demographic targeting was deployed. This means that contextual ads inspire people to explore products they would not have explored otherwise. This also offers brands an opportunity to use contextual advertising, especially for niche or new products/services.
See more: Why Contextual Marketplaces Are the Most Brand and Privacy-Safe Ways To Engage Consumers
Conclusion
The study shows that consumers engaged with relevant content at a specific moment are more receptive to contextual ads and more likely to take positive action. The study further shows that contextual advertisements produce more positive feelings and emotions among consumers than other forms of targeting. Contextual advertisements further promote positive impressions of a brand or product. Overall, in a privacy-conscious world, contextual advertising outperforms other forms of targeting strategies and offers brands new engagement opportunities.
This means that businesses should consider using contextual advertising to create better engagement among their target audiences and inspire them to take positive action.
Are you using contextual advertising to target your potential customers? What benefits have you seen? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .
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