Why Contextual Advertising Is Still Hard

Contextualized advertising is serving the right message to the right person at the right time. Standing in the way of that goal are several hurdles. Among them: user personalization, segmentation and a deluge of data

Contextualized advertising is serving the right message to the right person at the right time. Standing in the way of that goal are several hurdles. Among them: user personalization, segmentation and a deluge of data.

Mobile personalization can create additional complexities that we don’t generally see on the PC side of the world. This can be both a challenge and an opportunity, but adds some new dimensions to how we work to connect with consumers.

This difficulty in leveraging user behaviors makes micro-segmentation more difficult. This is where real value from contextualized ads is found. As close to one-to-one as you can make an ad, the more value it has for the recipient. Having segments that are too large can decrease the overall impact of the ads for a given consumer.

Advertisers can improved their segmentation by sifting through omnichannel data sets. While there’s great progress in this area, attributing online, real world and mobile actions to an end result remains elusive to some of the industry.

New Tools Making Contextual Advertising Easier
New data tools, optimization techniques and leveraging exchanges are all emerging to make contextual advertising easier.

Algorithms that can recognize and contextualize mixed data sets are paving the way for more relevant contextual ads. You can target based on location (information that’s automatically provided by a mobile device), behavior and by predetermined personalization rules. So, someone is now seen as a specific category of user based on what they do, where they are and other relevant data. Messages can be personalized based on these characteristics to get the right ad in front of the right person.

Once a user can be tied to a mobile number, this opens up a world of contextual opportunities. These IDs can be closely tied to segment and location, and passed along to real-time-bidding (RTB) exchanges. Here, brands and advertisers can serve a contextualized ad to the correct mere moments after he/she makes a trigger action. Where as before, this data would be aggregated and analyzed monthly or weekly, we are getting close to the point of real time analysis and optimization.

The Impact of Future Technology and Contextual Ads
The “Holy Grail” of contextual advertising is connecting relevant ads that are optimized for a single individual. Technology is heading in that direction.

Wearables will feed advertisers never before accessible biometrics that could indicate when someone needs a sandwich or bottle of water before the person realizes it.

Interactive TVs and cross-screen attribution will pull together all parts of a person’s day. Ambient qualities, like time of day or weather, will become data points that advertisers can assess and use to target consumers.

As these technologies, combined with faster servers, make valuable contextual advertising an everyday occurrence, we will see a shift in the advertiser/consumer relationship. It will become more symbiotic. Users will be able to decide with what and whom they want to interact. Those advertisers who can use data to provide users the greatest value will prosper. Those who can’t make sense of data will suffer as consumers take their business elsewhere with a quick click on an iPhone.