As we move further into 2024, the world of video advertising is changing fast. Two main strategies—contextual targeting and behavioural targeting—are at the center of this shift. Each has its own benefits and uses, but which one will come out on top this year? Let’s break it down.

What is Contextual Targeting?

Contextual targeting places ads based on the content of web pages or videos. Instead of using user data, it relies on analyzing the content’s keywords, topics, and other elements. This ensures the ads match what the viewer is currently engaged with.

Advancements in contextual targeting technology now allow for more accurate ad placements. This method benefits publishers by aligning with content and boosting user engagement. Notably, publishers see an 83% increase in positive sentiment on pages featuring contextual video.

What is Behavioural Targeting?

Behavioural targeting tracks users’ online activities to deliver ads based on their interests and past behaviours. This method uses data like browsing history, search queries, and online purchases. While it can be highly personalized, it raises significant privacy concerns and faces increasing scrutiny from privacy regulations.

Behavioural targeting tries to predict user behavior to serve relevant ads. However, with the phasing out of third-party cookies and stricter privacy regulations, this method faces challenges.

Contextual vs. Behavioral Targeting: Which One to Choose?

When deciding between contextual and behavioral targeting, several factors come into play:

Efficiency

While behavioral targeting leverages user data to deliver personalized ads, its efficiency is being challenged by the decline of third-party cookies. This decline hampers the ability to track users across websites, impacting the accuracy and reach of behavioral campaigns.

Contextual targeting, on the contrary, is becoming more efficient. Real reach—a key metric for advertisers—has risen from 50% to 71% with contextual video. This shows that ads are reaching their intended audience more effectively when contextually aligned.

Cost-Effectiveness

Contextual ads are 50% more likely to be clicked on than non-contextual ads and have a 30% higher conversion rate. These metrics indicate a higher return on investment for advertisers using contextual targeting.

Privacy Regulations

With declining third-party cookies, contextual targeting is more compliant with privacy regulations. Consumers also prefer contextual ads; 79% favour them over behavioural ads. This preference can lead to higher engagement and conversion rates.

Is Contextual Advertising Replacing Third-Party Cookies?

As third-party cookies fade out, contextual advertising is emerging as a strong alternative. The need for privacy-friendly solutions drives this shift. The global contextual advertising market is expected to reach $376.2 billion by 2027, with a compound annual growth rate (CAGR) of 13.3% from 2022 to 2027. Spending on contextual advertising is projected to grow by 13.8% annually from 2022 to 2030.

How AI Supports Contextual Video Advertising

The growth of contextual video advertising is closely tied to the advancements in Artificial Intelligence (AI). AI algorithms are pivotal in analyzing video content comprehensively, from text and audio to visuals, to accurately grasp its context. This capability empowers advertisers to position ads in contexts that resonate deeply with viewers, enriching their viewing journey and boosting engagement with ads. 

AI-driven tools also enable seamless ad insertion into video streams, ensuring a smooth viewer experience without interruptions. Moreover, AI continuously refines ad targeting by leveraging real-time data and understanding viewer behaviors, thereby maximizing the effectiveness of advertising campaigns. Looking ahead, as AI technology evolves further, we anticipate increasingly sophisticated and personalized experiences in contextual video advertising.

How Jet-Stream Supports Contextual Video Advertising

Jet-Stream Privacy Player Pro is the first commercially available video player with an integrated contextual targeting algorithm. Using metadata, technical data, and AI analysis, we create a detailed contextual dataset that allows advertisers to target ads precisely, all without relying on cookies. This not only respects user privacy by removing the need for consent but also ensures that ads reach every viewer, unlike traditional methods that can miss a significant portion of the audience. By focusing on delivering ads that resonate and perform well, we enhance engagement and boost ad revenues for our customers.

AI-driven Context Generation

Jet-Stream’s AI-driven context generator automates the process of gathering essential data points, such as user location, device type, and video details. It also analyzes content themes and categories to ensure ads are perfectly aligned with the video content. This technological innovation simplifies the complexities of contextual advertising for publishers, saving them time and resources. Effortlessly optimize your advertising strategies and ensure each video maximizes viewer interaction while adhering to stringent privacy standards.

Are you interested in Contextual Advertising for your media streaming? Get in touch today!

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