THINGS IN CONTEXT

to deliver the same level of sophistication with contextual targeting that we saw with behavioural targeting. Data management and demand-side platforms have increased the number of events and properties being tracked, improving the analysis of context to deliver performance through better and more personalised user experiences. These developments will positively affect the user journey, as well as paid media campaigns, contributing to better engagement, attention and quality metrics.

This has already been reinforced through a recent study from Dentsu Aegis. They implemented a test to gain a robust understanding of potential best practices and tools available for success in a world with diminishing access to behavioural targeting. The study goes about testing different contextual intelligence vendors against behavioural targeting with two objectives: evaluate cost efficiency and compare accuracy. Verified by MOAT, Nielsen DAR, Xandr and Appen, the results were eye-opening, with contextual targeting producing 36 per cent lower

CPMs and 48 per cent lower CPCs than behavioural targeting, reinforcing that contextual targeting is a viable alternative in a post-cookie world.

Furthermore, a study published by Dr. Erik Nylen, The Drum’s head of data science, reported results as staggering as Dentsu’s, establishing contextual targeting to be 4.7 times less expensive, deliver 12 per cent more attention, and yield significantly greater brand lift per second, being 7.5 times greater than the impact per dollar spent on audience behavioural targeting.

With a lower CPM and potentially higher performing engagement metrics, mixed in with diminishing third-party data points, contextual targeting and contextual intelligence platforms can not only outperform behavioural targeting, but also may become the new standard to deliver against performance objectives.

Brands and advertisers should start looking at performance differences between behavioural and contextual targeting to understand how their investment could be better used, as they prepare for a new era in digital marketing. Start with determining what “good” performance means for your brand. Different techniques can be used to reach your objectives, but establishing benchmarks and understanding how your results could be better are vital to continuously improving performance.

Testing goes a long way. Whether it’s technology, people, processes or relationships, it can all affect the results your brand can achieve. Ultimately, performance is about correlations as much as understanding causations; map your approach out, understand the levers you can pull and how they will affect the type of performance you are after. Finally, contextual targeting is more audiencecentric and user-focused. It offers us as brands and advertisers the opportunity to deliver better experiences without sacrificing performance.