Contextual ad targeting paves the way for new opportunities
Advertisers and marketers are always looking for ways to remain competitive in the current digital landscape. The challenge of signal loss continues to prompt marketers to rethink their current and future strategies. With many major browsers phasing out support for third-party cookies due to privacy and data security concerns, marketers will need to find new ways to identify and reach their target audience. Contextual ad targeting offers an innovative solution; a way to combine contextual signals with machine learning to engage with your consumers more deeply through highly targeted accuracy. Contextual advertising can help you reach your desired audiences amidst signal loss – but what exactly is contextual advertising, and how can it help optimize digital ad success?
In a Q&A with our experts, Jason Andersen, Senior Director of Strategic Initiatives and Partner Solutions with Experian, and Alex Johnston, Principal Product Manager with Yieldmo, they explore:
- The challenges causing marketers to rethink their current strategies
- How contextual advertising addresses signal loss
- Why addressability is more important than ever
- Why good creative is still integral in digital marketing
- Tips for digital ad success
By understanding what contextual advertising can offer, you’ll be on the path toward creating powerful, effective campaigns that will engage your target audiences.
Check out Jason and Alex’s full conversation from our webinar, “Making the Most of Your Digital Ad Budget With Contextual Advertising and Audience Insights” by reading below. Or watch the full webinar recording now!
Macro impacts affecting marketers
How important is it for digital marketers to stay informed about the changes coming to third-party cookies, and what challenges do you see signal loss creating?
Jason: Marketers must stay informed to succeed as the digital marketing landscape continuously evolves. Third-party cookies have already been eliminated from Firefox, Safari, and other browsers, while Chrome has held out. It’s just a matter of time before Chrome eliminates them too. Being proactive now by predicting potential impacts will be essential for maintaining growth when the third-party cookie finally disappears.
Alex: Jason, I think you nailed it. Third-party cookie loss is already a reality. As regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) take effect, more than 50% of exchange traffic lacks associated identifiers. This means that marketers have to think differently about how they reach their audiences in an environment with fewer data points available for targeting purposes. It’s no longer something to consider at some point down the line – it’s here now!
Also, as third-party cookies become more limited, reaching users online is becoming increasingly complex and competitive. Without access to as much data, the CPMs (cost per thousand impressions) that advertisers must pay are skyrocketing because everyone is trying to bid on those same valuable consumers. It’s essential for businesses desiring success in digital advertising now more than ever before.
Contextual ad targeting: A solution for signal loss
How does contextual ad targeting help digital marketers find new ways to reach and engage with consumers? What can you share about some new strategies that have modernized marketing, such as machine learning and Artificial Intelligence (AI)?
Jason: We’re taking contextual marketing to the next level with advanced machine learning. We are unlocking new insights from data beyond what a single page can tell us about users. As third-party cookies go away, alternative identifiers are coming to market, like RampID and UID2. These are going to be particularly important for marketers to be able to utilize.
As cookie syncing becomes outdated, marketers will have to look for alternative methods to reach their target audiences. It’s essential to look beyond cookie-reliant solutions and use other options available regarding advertising.
Alex: I think, as Jason alluded to, there’s a renaissance in contextual advertising over the last couple of years. If I were to break this down, there are three core drivers:
- The loss of identity signals. It’s forcing us to change, and we must look elsewhere and figure out how to reach our audiences differently.
- There have been considerable advances in our ability to store and operate across a set of contextual signals far more extensive than anything we’ve ever worked with in the past and in far more granular ways. That’s a huge deal because when it comes to machine learning, the power and the impact of those machine learning models are entirely based on how extensive and granular the data set is that you can collect. Machine learning can pull together critical contextual signals and figure out which constellations, or which combinations of those signals, are most predictive and valuable to a given advertiser.
- We can tailor machine learning models to individual advertisers using all those signals and find patterns across those in ways that were previously impractical or unfeasible. The transformation is occurring because of our ability to capture much more granular data, operate across it, and then build models that work for advertisers.
Addressability: Connect your campaigns to consumers
How does advanced contextual targeting help marketers reach non-addressable audiences?
Jason: Advanced contextual targeting allows us to take a set of known data (identity) and draw inferences from it with all the other signals we see across the bitstream. It’s taking that small seed set of either, customers that transacted with you before that you have an identity for, or customers that match whom you’re looking for. We can use that as a seed set to train these new contextual models. We can now look at making the unknown known or the unaddressable addressable. So, it’s not addressable in an identity sense, it is addressable in a contextual or an advanced contextual sense that’s made available to us, and we can derive great insight from it.
One of the terms I like to use is contextual indexing. This is where we take a set of users we know something about. So, I may know the identity of a particular group of households, and I can look at how those households index against any of the rich data sets available to us in any data marketplace, for example, the data Yieldmo has. We can look at how that data indexes to those known users to find patterns in that data and then extrapolate from that. Now we can go out and find users surfing on any of the other sites that traditionally don’t have that identifier for that user or don’t at that moment in time and start to be able to advertise to them based on the contextually indexed data.
Historically, we’ve done some contextual ad targeting based on geo-contextual, and this is when people wanted to do one to one marketing, and geo-contextual outperformed the one to one. But marketers weren’t ready for alternatives to one to one yet. We want marketers to start testing these solutions. Advertisers must start trying them, learning how they work, and learn how to optimize them because they are based on a feedback loop, and they’re only going to get better with feedback.
Alex: Jason, you described that perfectly. I think the exciting opportunity for many people in the industry is figuring out how to reach your known audience in a non-addressable space, that is based on environmental and non-identity based signals, that helps your campaign perform. Your known audience are people that are already converting – those who like your products and services and are engaged with your ads. Machine learning advancements allow you to take your small sample audience and uncover those patterns in the non-addressable space.
It’s also worth noting that in this world in which we are using seed audiences, or you are using your performing audiences to build non-addressable counterpart targeting campaigns, having high-quality, privacy-resilient data sets becomes incredibly important. In many cases, companies like Experian, who have high quality, deep rich training data, are well positioned to support advertisers in building those extension audiences. As we see the industry evolve, we’re going to see some significant changes in terms of the types of, and ways in which, companies offer data, and make that available to advertisers for training their models or supporting validation and measurement of those models.
Jason: Addressable users, the new identity-based users, are critical to marketers’ performance initiatives. They’re essential to training the models we’re building with contextual advertising. Together, addressable users and contextual advertising are a powerful combination. It’s not just one in isolation. It’s not just using advanced contextual, and it’s not just using the new identifiers. It’s using a combination to meet your performance needs.
It’s imperative to start thinking about how you can begin building your seed audiences. What can you start learning from, and how do you put contextual into play today? You are looking to build off a known set and build a more advanced model. These can be specialized models based on your data. You can hone in and create a customized model for your customer type, their profile, and how they transact. It’s a greenfield opportunity, and we’re super excited about the future of advanced contextual targeting.
Turn great creative into measurable data points
Why does good creative still play an integral part in digital advertising success?
Jason: Good creative has always been meaningful. It’s vital in getting people to click on your ad and transact. But it’s becoming increasingly important in this new world that we’re talking about, this advanced contextual world. The more signal that we can get coming into these models, the better. Good creative in the proper ad format that you can test and learn from is paramount. It comes back to that feedback loop. We can use that as another signal in this equation to develop and refine the right set of audiences for your targeting needs.
Alex: If you imagine within the broader context of identity and signal loss, creative and ad format becomes incredibly powerful signals in understanding how different audiences interact with and engage with different creative. In the case of the formats that serve on the Yieldmo exchange, we’re collecting data every 200 milliseconds around how individual users are engaging with those ads. Interaction data like the user scrolling back or the number of pixel seconds they stay on the screen, fills this critical gap between video completes and clicks. Clicks are sparse and down the funnel, and views and completes are up the funnel. All those attention and creative engagement type metrics occupy the sweet spot where they’re super prevalent, and you can collect them and understand how different audiences engage with your ads. That data lets you build powerful models because they predict all kinds of other downstream actions.
Throughout my career, I learned that designing or tailoring your creative to different audience groups is one of the best ways to improve performance. We ran many lift studies with analysis to understand how you can tailor creative customized for individual audiences. That capability and the ability to do that on an identity basis is starting to deteriorate. The ability to do that using a sample of data or using a smaller set of users, either where you’re inferring characteristics or you’re looking at the identity that does exist in a smaller group, becomes powerful for being able to customize your creative to tell the right story to the right audience. When you layer together all the interaction data collected at the creative level on top of all the contextual and environmental signals, you can build powerful models. Whether those are driving proxy metrics, or downstream outcomes, puts us in a powerful position to respond to the broader loss of identity that we’ve relied on for so many years.
Our recommendations for marketers for 2023 and beyond
Do you have recommendations for marketers building out their yearly strategies or a campaign strategy?
Jason: Be proactive and start testing and learning these new solutions. I mentioned addressability and being in the right place at the right time. That’s easier in today’s third-party cookie world. But as traditional identity is further constricted, you will have these first-party solutions that will not be at scale, so you’re less likely to find your user at the scale you want. It would be best if you thought about how to reach that user at the right place at the right time. They may not be seen from an identity basis. They might not be at the right place at the right time when you were delivering or trying to deliver an ad. But you increase your chance of reaching them by building these advanced contextual targeting audiences using this privacy-safe seed ‘opted-in’ user set; this is a way to cast that wider net and achieve targeted scale.
Alex: Build your seed lists, test your formats with different audiences, and understand what’s resonating with whom. Take advantage of some of the pretty remarkable advances in machine learning that are allowing us, really, for the first time to fully uncork the potential and the opportunity with contextual in a way that we’ve never done before.
Jason: At the end of the day, it’s making the unaddressable addressable. So, it’s a complementary strategy; having that addressable piece will feed the models. But also, that addressable piece still needs to be identity-based, addressable still needs to be part of your overall marketing strategy, and you need to complement it with other strategies like advanced contextual targeting. The two of them together are super complimentary. They learn from each other, and it’s a cyclical loop. Now is the time to take advantage and start testing and understanding how these solutions work.
We can help you get started with contextual ad targeting
Contextual advertising can help you stay ahead of the curve, identify your target audience, and continue to drive conversions despite signal loss. We’ve partnered with Yieldmo to help make sure that your marketing campaigns are reaching the right target audiences on the platforms that are most relevant. To get started with contextual ad targeting to reach the right audience at the right time and drive conversions, contact our marketing professionals. Let’s get to work, together.
Find the right marketing mix in 2023
Check out our webinar, “Find the right marketing mix with rising consumer expectations.” Guest speaker, Nikhil Lai, Senior Analyst from Forrester Research, joins Experian experts Erin Haselkorn, and Eden Wilbur. We discuss:
- New data on the complexity and uncertainty facing marketers
- Consumer trends for 2023
- Recommendations on finding the right channel mix and the right consumers
Get in touch
About our experts
Jason Andersen, Senior Director, Strategic Initiatives and Partner Solutions, Experian
Jason Andersen heads Strategic Initiatives and Partner Enablement for Experian Marketing Services. He focuses on addressability and activation in digital marketing and working with partners to solve signal loss. Jason has worked in digital advertising for 15+ years, spanning roles from operations and product to strategy and partnerships.
Alex Johnston, Principal Product Manager, Yieldmo
Alex Johnston is the Principal Product Manager at Yieldmo, overseeing the Machine Learning and Optimization products. Before joining Yieldmo, Alex spent 13 years at Google, where he led the Reach & Audience Planning and Measurement products, overseeing a 10X increase in revenue. During his time, he launched numerous ad products, including YouTube’s Google Preferred offering. To learn more about Yieldmo, visit www.Yieldmo.com.
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Suppose you're watching your favorite TV show, and an ad suddenly catches your attention. It urges you to take immediate action, whether to call a number, visit a website, or text a keyword like ‘DETAILS’ to a specific number for more information. This is direct response television (DRTV), a powerful form of advertising available on all TV types — including live, cable, and streaming — that directly connects brands with consumers to drive immediate engagement and measurable results. The goal of DRTV marketing is simple: convert viewers into customers quickly and measurably by asking them to do something in real time. Every DRTV ad is carefully designed to drive quick conversions with a clear, direct path from interest to action. This makes it an essential tool for marketers who need to measure their return on investment (ROI) for TV and see instantaneous results. 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They often include demonstrations and special offers to educate and engage viewers with urgent, limited-time deals. Think of the iconic “But wait, there’s more!” ads used to sell everyday items ranging from household cleaners to exercise equipment. Short-form ads Short-form DRTV ads are 30-second to 2-minute ads that get straight to the point with a single message or offer and a clear call-to-action (CTA) to encourage immediate engagement. Short-form ads are ideal for quick bursts of information, like promoting a flash sale or highlighting a new product. A 60-second ad showcasing a new mobile app might feature a quick walkthrough of its features, followed by a QR code or website URL to download it instantly. Product demos Some DRTV ads focus exclusively on demonstrating how a product works in real-life scenarios. These ads are great for showing off unique features or solving familiar pain points that make the product feel essential. A cookware brand might show how its nonstick pans make cooking and cleanup a breeze while including a CTA to “order now and get a free bonus spatula!” Testimonials Testimonials from real customers or experts are a great way to build trust and credibility. Hearing someone’s success story or endorsement of a product or service can help viewers feel confident about their purchase decision. A skincare brand, for example, might air a two-minute ad of a dermatologist explaining the science behind the product, along with five-star reviews from satisfied users. Call-in contests or limited-time offers This type of DRTV ad creates urgency by promoting a special offer or giveaway. Viewers might have to call a number or visit a website within a specific timeframe to claim the deal. For example, travel agencies sometimes air ads offering free vacations or planning kits to the first 100 callers, which helps them generate immediate leads. Hybrid ads with digital integration Many modern DRTV campaigns blend traditional TV with digital tools, like QR codes, social media hashtags, or links to custom landing pages. These hybrid ads meet viewers wherever they are. A fitness program might air a short-form ad with a QR code linking to their free app trial, making it easy for viewers to instantly engage. Success tips for DRTV advertising Creating a successful direct response TV campaign centers on messaging that resonates with the right audience, inspires action, and delivers measurable results. Here are some essential tips for a winning DRTV strategy. Strong CTA Every DRTV ad should include a compelling, straightforward CTA that motivates viewers to act immediately. Whatever it is, your CTA should be easy to understand and time-sensitive to create urgency, such as, “Claim this limited-time offer in the next 30 minutes!” Multi-channel integration Direct response TV works best when part of a broad multi-channel strategy, so you should make sure your campaign integrates well with digital channels. This can reinforce your message, help consumers engage across platforms, and drive better results. Audience targeting Precise audience targeting is critical to DRTV campaign success. Experian’s advanced TV audiences, developed with the Advertising Research Foundation (ARF), help you connect with the right viewers to drive immediate action. These syndicated audiences are now available on FreeWheel, the TV advertising industry’s global tech platform. With over 2,400 ready-to-use audience segments, Experian enables you to target specific groups, such as: TV viewership audiences: Target households based on viewing habits and preferred devices. In-market car buyers: Reach consumers actively searching for their next vehicle, which is ideal for driving sales. Holiday shoppers: Engage gift-givers, deal-seekers, and travelers during peak shopping seasons. New TV audiences released in August 2024 In addition to these, our August 2024 release introduced several updates that further refine Experian’s targeting capabilities. Some of the audience updates in this release included: New retail transaction audiences: These segments offer insights into categories like children’s products, parenting, hobbies and crafts, science and nature, and sports and fitness. With high spending and frequent purchase behaviors, these audiences provide a deeper understanding of consumer preferences. Notable segments include: Sports and fitness high spenders Children’s product high spenders Science and nature high spenders Updated TV audiences: New and refreshed TV segments now reflect the viewing habits of today’s consumers for accurate insights and targeting. Examples of newly added segments include: Free and paid ad-supported streaming TV subscribers Satellite service subscribers Cable and streaming TV service subscribers With these advanced targeting capabilities, your DRTV campaigns can be more effective and resonant with viewers most likely to respond for maximum ROI and engagement. Effective planning A strong DRTV campaign starts with defining your objectives, budgeting effectively, and identifying the right media mix. Understanding where your audience spends their time — prime-time TV or niche cable channels — will get you the most value from your DRTV investment. Real-time tracking Tracking your DRTV campaign’s performance in real time is critical for success. Tools that provide immediate insights into viewer responses, website visits, or call volumes allow you to identify what’s working and pivot quickly if needed. Measuring success Measuring success against key performance indicators (KPIs) like conversion rates, ROI, or cost-per-acquisition (CPA) is an excellent way to know if your DRTV campaign is delivering results. Experian’s advanced data solutions make tracking and analyzing campaign performance easier, so you can make data-informed decisions and deliver precise results to stakeholders. Continuous optimization DRTV marketing is an ongoing effort. Use the insights from real-time tracking and performance measurement to refine your strategy. Optimization keeps your campaign relevant and effective, whether you need to tweak your CTA, adjust your audience targeting, or test new creative formats. How DRTV relates to advanced TV and connected TV While DRTV has historically focused on immediate viewer actions via traditional linear TV, it’s found new relevance within advanced TV and connected TV (CTV) ecosystems. These modern formats expand the measurable, action-driven qualities of DRTV while incorporating the precise targeting and personalized storytelling made possible by digital technologies. DRTV and advanced TV Advanced TV enhances DRTV by enabling addressable advertising, which helps marketers deliver ads to specific households based on behavioral or demographic data. For instance, using tools like Experian’s Graph, advertisers can integrate data sets across multiple sources to refine audience segmentation and tailor messages to individual households. Advanced TV also supports cross-channel consistency to provide a unified customer experience whether the viewer engages with linear TV, streaming services, or other devices. Additionally, programmatic ad buying plays a role in automating the ad-buying process. This helps advertisers optimize their bids and placements and get DRTV campaigns in front of the right audience at the right time, which maximizes cost-efficiency across both traditional and digital channels. DRTV and CTV CTV has a high rate of logged-in, authenticated viewers and provides a lot of helpful first-party data. This allows for hyper-precise audience targeting, cross-device attribution, and an ability to link ad exposure to conversions — even when purchases occur on non-CTV devices. Universal IDs like UID2 further strengthen these capabilities by creating consistent and privacy-respecting user identities across platforms. Experian’s TV partnerships Through partnerships with leading CTV players like Madhive, Samsung, Disney/Hulu, and others, Experian’s identity solutions integrate seamlessly to support well-timed, personalized ads across major streaming platforms. These integrations, powered by our Digital and Offline Graphs, offer a complete view of audiences to enable more controlled, effective activation across mediums, including free ad-supported streaming television (FAST) channels. Using Experian’s advanced data and identity tools, advertisers can tap into the full potential of DRTV strategies within advanced TV and CTV to make campaigns more actionable, efficient, and impactful. The future of DRTV So, what is DRTV going to look like in the future? With the integration of digital and television platforms, DRTV is becoming more targeted, interactive, and personalized. This shift creates new opportunities for advertisers to drive conversions. Here are some key advancements that will continue to shape the future of DRTV: Addressable TV: Advertisers can deliver targeted ads to specific households based on demographic and behavioral data. It uses data from smart TVs, streaming devices, and third-party data providers to enable highly relevant ads based on the interests of individual viewers. Interactive TV ads: Interactive TV ads enable viewers to engage directly with the content through their remote control or mobile devices. Users can click on a product for more information or make purchases without leaving the TV screen and immediately convert. Authenticated audiences: With CTV and AI technology, advertisers can use first-party data from authenticated users to improve targeting, measurement, and campaign performance. Advertisers can create a more cohesive and personalized experience by linking viewers across multiple devices, which improves ad effectiveness and attribution. Branded apps with saved information: Branded apps that store payment and personal information streamline the direct response process. These apps reduce purchase journey friction and allow quicker conversions, as viewers can complete transactions with fewer steps. QR codes replacing URLs: QR codes are becoming a popular alternative to traditional URLs in DRTV ads. These codes provide a quick, convenient way for viewers to visit a website, access a product page, or act on a CTA simply by scanning the code with their phone. Better targeting algorithms: Advancements in targeting algorithms allow advertisers to serve more personalized and relevant ads. These algorithms help ads reach the right audience at the right time, which can increase engagement and conversion rates. These innovations offer advertisers more tools to connect with audiences in a personalized, interactive, and measurable way. Connect with Experian’s TV experts Experian can help you achieve the full potential of your direct response TV advertising efforts with our advanced tools, precise audience targeting, and strong industry partnerships. We help brands create impactful DRTV campaigns that drive real-time engagement, audience connection, and measurable results, whether for traditional, advanced, or CTV. Reach out today to work with us on your DRTV efforts and achieve better ROI, or explore how our expertise can transform your TV advertising campaigns. Connect with our TV experts Contact us Latest posts