The Power of Contextual Advertising

It has already been established that Internet marketing has many facets and components. Depending on the business’ goals, there are various ways on how it can promote its products or services. This includes contextual advertising.

What is Contextual Advertising?

In the world of online marketing, contextual advertising is a form of web promotion wherein ads displayed on websites or other media are using automated keywords based on the content that is displayed to the user. For instance, if an Internet user visits a site that has to do with cars, he can see car-related advertisements displayed on the page. However, it is only possible if the website uses contextual advertising.

How Contextual Advertising Works

A contextual advertising system scans a website’s content for keywords, and then it will return ad copies based on the page’s search terms. It can be displayed on the site as an in-text, a separate ad unit, or as a pop-up ad.

For a pop-up ad, a site visitor needs to click it before the go through time runs out. Otherwise, it will automatically change to show the next relevant advertisement. Aside from that, it is also used by search engines to display advertisements based on the user’s search query.

On the other hand, context advertisement service providers will provide website owners with JavaScript code. These codes will be inserted to web pages, and then it will display relevant ads. The relation of ad copies with the content is calculated by a bot that is included in the code. Its job is to index a page’s content, so that it will show a relevant ad for the user.

The Role of Advertising Agencies

Aside from providing JavaScript codes, advertising agencies should also help business understand the concept of contextual advertising. That’s because it can affect their online marketing strategy. In fact, web promotion has three components.

Creation: What the advertisement should look like.

Media Planning: Knowing where advertisements should run.

Media Buying: How advertisements should be paid.

When it comes to contextual advertising, media planning is replaced by computers handling the ad placement across millions of websites.

Impact of Contextual Advertising

Contextual advertising has made major impact on earnings on many websites. Because the ads are more targeted, it is most likely to be clicked, thus generating revenue to the website owner. On the other hand, it allows business to expand awareness for their brand. Although it poses issues like third-party hyperlinking, it could still be a potential way of promoting a product or service on the Internet.