Contextual advertising is making a comeback as a result of the impending deprecation of third-party cookies, which enables marketers to effectively target customers without violating privacy laws.

Contextual can be used in a variety of settings thanks to its adaptability, but the CTV industry may be particularly attractive to advertisers. CTV, which has a global audience of more than 1 billion, has grown astronomically since the decade’s beginning. The use of the media also transcends demographics, but it is particularly common among Millennial and Gen-Z viewers whose behaviors are changing the face of digital advertising.

Compared to linear TV, CTV offers more broader insights into audience behavior and preferences, giving marketers additional possibilities to use context to customize their campaigns for optimum impact. Advertisers’ confidence in investing in CTV, which is already demonstrating resilience, can only be boosted by predictions showing audiences in many markets actually prefer commercials on streaming services compared to linear TV. By 2026, ad spend in the medium is predicted to surpass USD£30bn (£24.1bn).

Related: Ad Buyers Demand CTV Transparency After Discovering Alcohol And Casino Advertisements On Children’s Shows

Despite this, CTV has drawbacks, with fragmentation in the market standing out as a particular pain point for advertisers. When it comes to contextual advertising, CTV’s reach may be impressive, but it also lacks information on precisely who is watching and when. For instance, a single Netflix account used to watch Peep Show can be linked to one Gen Xer re-watching an old favorite just as easily as a family of college students discovering it for the first time. Although this is undoubtedly a problem that CTV and traditional TV both face, it is less of a concern for other forms of digital advertising, such online or mobile, which could diminish CTV’s appeal.

So, does CTV succeed where other networks fail when it comes to relevant advertising, or vice versa? We asked professionals in the field what they thought:

When it comes to contextual advertising, CTV can do much more.

The future of the CTV ad business will depend heavily on contextual and semantic targeting. Since most viewers prefer to watch CTV programming with friends and family, it is impossible to tell exactly who is watching in a given home. That makes identifying specific targets exceedingly challenging, if not impossible. But we may connect the advertisement with the actual content using contextual or semantic analysis. This makes it immediately applicable to anyone from a home viewing, appealing to their current interests. It’s also a consumer-friendly approach to privacy because it relies on content rather than the data of specific individuals.

Advertisers now prioritize contextual in their CTV strategies, but there is always room for improvement. I’d want to see advertisers use a more subtle strategy when contextually targeting their adverts. A sports gear company, for instance, can target sports material, but they can also look at content that invokes the spirit of their brand, such as action, adventure, and excitement. On CTV, advertisers may cast their nets considerably wider by using more creativity and expanding their thinking beyond flat vertical content, reaching not just existing customers but also potential new ones and assisting in the more efficient expansion of a business.

Data is accessible; it simply has to be properly tapped into.

Related: What Is The Difference Between Connected TV (CTV) And Over-The-Top (OTT)?

Beyond the context of the broadcast, CTV cannot provide really customised adverts without knowing who is viewing. Adding viewer information to the context will be essential to enhancing this experience. Data is readily available; all that needs to be done is to properly utilize it. As a sector, we must work to establish a standardized taxonomy for classifying content.

Fortunately, AI will revolutionize CTV advertising. Data will be used to determine the optimal times to advertise in order to target peak audiences, and technology that can identify people and their responses to material will soon be available. Brands may definitely benefit from this fascinating channel by taking advantage of the impending substantial advancements in CTV advertising.

Oversimplification must be avoided.

Depending on the current situation, the emotional reactions to visual information can vary greatly. As the killer zombies from Mars hurtle toward Earth with the intention of eradicating humanity, we might experience fear, followed by a sense of elation as our heroes stop them. Clearly, in order to communicate a message that will ring true with their target audience, advertisers must have a solid understanding of their current state of mind.

Contextual may be a very effective tool in the CTV space in this sense. But we must be careful not to simplify things too much. No single category should be used to pigeonhole content. Advanced contextual technology must be used by advertisers to comprehend each section of the content in order to determine which message will be appropriate at that particular time. By doing this, advertisements can most effectively appeal to attitude and significantly enhance business results.

Contextual can provide CTV with a wealth of opportunities.

Advertisers may now provide a more individualized experience than ever before thanks to CTV. They can provide users more freedom over the video content they watch, enabling them to present timely and relevant advertisements. Instead than relying on speculation to target their audiences, advertisers can now truly see what those viewers want based on what they’ve previously viewed.

Businesses looking to spread their message will have plenty of chances thanks to the convergence of contextual advertising and CTV. By leveraging programmatic to target particular audiences at scale, employing data analytics tools to better understand the content and context, and optimizing ad targeting and messaging, advertisers can better understand the effectiveness of their campaigns.

For best results, contextual information is essential.

Relevance of CTV advertising depends on matching creative to what viewers watch, but for it to be most effective, it also needs to take varying human attention into account as an additional contextual layer. Because each systematic viewing pattern has a unique combination of concentration cycles and peaks, as well as varied powers to influence desirable brand outcomes, our findings have demonstrated that there are multiple systematic viewing patterns in the way that real people consume media.

Carefully structuring campaigns for the correct environmental fit at various levels will maximize performance for any media. Brands must make sure planning and buying account for how content is really watched, going beyond merely matching ads to content and taking into account the distinct shapes of attention on each platform.


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