Publishers Looking For Ad Revenue Growth In Contextual Ad Targeting

Publishers are soon beginning to use contextual data tools wisely to have more control over their contextual ad revenues. This is largely because there has been a shift from data-heavy, third-party based audience targeting. Contextual ad targeting implies to the ads that are being served based on the environment the consumer is receiving or reading the same. 

Publishers are to construct their own context-based ad tools and merge them with first-party data segments. The New York Times has built 5 proprietary contextual ad products and about last year it ran 100 campaigns with the help of one of its tools. As far as other publishers are concerned, they’re combining contextual ads with CRM records, email addresses and making look-alike audiences.

Now as browser regulators are thumping down on cross-sites, it has created an urgency to initiate the demand from contextually relevant buyers in the ecosystem, especially, in the iOS environment. However, publishers have always been creating contextual private-marketplace deals. As audience-based targeting goes out of the picture, contextual data makes up for a major chunk that advertisers and vendors will have to work with.

However, contextual-targeting has its own limits as it doesn’t work for last-click attribution models. Hence, the common concern is that it won’t be able to replace audience-based targeting in terms of generation of revenue. According to some of the publishers, the extend of potential spend that could slide into contextual is more than anticipated. 

One of the reports released in May by PwC and ad trade body ISBA revealed that premium publishers’ advertisers continued to appear on plenty of websites. This clearly was encouraged by audience segmentation and retargeting, stated Mr Aydemir, who serves as the head of audience and data, commercial at News UK. He also added that if segmenting and retargeting across the long tail of open marketplaces ceases to exist then a lot of ad spend would shift to contextual. 

Publishers will take more control of their contextual ad revenue stream as demand from marketers grow. As of now, on the open exchange, third-party vendors are scraping the pages of publishers as contextual buying decisions are being taken by intermediaries without having input control from the publishers opines Ayedemir. However, this could shrink in future since intermediaries would be forced out by concerns like user consent, leakage of data and blocked cookie. 

Source: Digiday