Contextual advertising might be considered a modern phenomenon, but it is one of the oldest tricks in a marketer’s playbook. From advertisements for cold cream in early women’s journals to the first-ever car advertisement in Scientific American, contextual placement has long played a key role in enticing prospective customers.
Today, however, the media environment is considerably more sophisticated, and capitalising on the e-commerce boom of recent years calls for a strategy that meets customers in the right place and in the right mindset.
There’s no questioning the value of the prize on offer. E-commerce presents an immeasurable opportunity for Asia Pacific’s marketing community, with an estimated market size of US$4.2 trillion in 2024. This is expected to reach US$6.76 trillion by 2029, growing at a CAGR of 10% over the next five years.
In the past, brands looking to ramp up e-commerce sales, either on their own platforms or via digital marketplaces, had limited advertising options. Banner ads and pop-ups were commonplace, often appearing in inappropriate places and completely out of context, much to browsers’ frustration.
Now, with heightened consumer expectations and growing awareness around data privacy, the playing field looks very different. With Google’s sunsetting of the cookie progressing at a glacial pace, context-based marketing has emerged as the clear cut privacy-friendly alternative to previous data-intensive strategies.
Why context is king in today’s digital advertising realm
In a vast market like APAC, context matters deeply. As home to a wide range of people, ethnicities and cultures, not to mention 60% of the world’s population, APAC poses both an exciting and challenging landscape for e-commerce brands.
In order to be successful in this space, marketers need to thoroughly understand their target audience’s preferences, interests and passions. By delving into the consumer’s psyche and emotional drivers at precise moments, and assessing the advertising creative that cuts through with specific audiences, brands can deliver highly relevant ads.
Correspondingly, consumers are increasingly demanding personalised experiences. But even without access to device IDs and third-party cookies, marketers can still deliver hyper-personalised experiences by curating creative that matches the page content (or video) the user is viewing.
Cutting edge technology to deliver highly relevant e-commerce ad creative
AI-powered contextual advertising is undoubtedly one of the biggest game-changers across the digital landscape of recent years. With fast-advancing innovations in contextual platform capabilities, buyers now have a new and compelling opportunity presented to them.
Given the seemingly infinite number of pages and users on offer, it’s these AI-powered platforms that are best poised to deliver business’s commercial objectives at the necessary scale.
But what exactly should e-commerce-focused marketers be looking for? In essence, the ability to forensically delve into context is what will separate the best from the rest. The most innovative platforms now offer not just in-depth keyword search analysis, but rigorous web page and video analysis that ranks thousands of pieces of creative at speed.
Then, combining all these data points, standout platforms will match ad creative with high-attention online inventory, giving each placement a greatly increased chance of successfully driving conversions.
That’s why it’s essential to have the right platform partner: to gain a serious analytical leg up, while also having a compelling case to reach relevant publishers.
Successful partnerships between marketers and publishers are those that create a win-win situation. Publishers can benefit from advanced contextual advertising to increase monetisation opportunities, while advertisers can be assured that their creative is appearing alongside content that is suitable for their brands.
In a cookieless and privacy-conscious world, e-commerce brands require new ways to deliver targeted ads to consumers digitally. Contextual advertising, in many ways, may be as old as the industry itself, but it has rapidly risen to meet the demands of the modern age. With advanced advertising platforms as partners, marketers can seize on the billion-dollar opportunity presented, while also delivering ad creative that is the perfect match for today’s privacy-focused consumer.
This thought leadership is written by Sorrel Kesby, Head of Global Commercial Operations at GumGum
