Contextual Targeting

Simply put, contextual targeting is the placement of ads in editorial contexts related to the product being advertised. Such as an ad for a computer next to an article about computers. Behavioral Targeting reaches online audiences with advertising based on where people go and what they do, as indicators of what their interests are most likely to be.

A recent behavioral targeting vs. contextual targeting study on an Internet advertising campaign for Panasonic found behavioral targeting identified and reached 50.3 percent more imminent buyers of Panasonic plasma TV's than contextual targeting. The study, by Next Century Media.

Women are slightly more likely to respond to contextual targeting than men (63 percent to 60 percent).

The first study to use Eye Tracking to compare behavioral targeting to contextual targeting in terms of advertising awareness, branding measures and ROI, was designed to test the belief about higher attentiveness in contextual targeting, was conducted by Next Century Media for Tacoda.

With contextual targeting, ads appear next to website content that is relevant to the ad. Contextually targeted ads have been shown to increase the conversion rate. By placing ads for Budweiser beer, for example, on the content pages of a website about NASCAR racing in Daytona Florida, the ads are more likely to reach an receptive audience.