According to a study produced by IAB Brazil in partnership with Kantar Ibope Media, the national market invested R$ 16.4 billion in digital advertising only in the first six months of 2024. Within this movement in the market, it is possible to identify the main strategies of the sector today and predict possible trends that should come into weight in the second half of the year and early 2025. This is the case of contextual advertising.
According to Bruno Almeida, CEO of us media“, the leading media solutions hub in Latin America, will transform the future of the industry.With Google moving forward to block third-party tracking cookies in Chrome, companies need to find ways to continue offering relevant ads without access to data collected on sites outside their domain. Contextual advertising is the main one, as it opens space for new formats and” possibilities, he says.
How does contextual advertising work?
Cookies are personal information collected during visits to websites and shared with other companies, which allows personalized advertising. However, in the last four years, the discussion about blocking this data has advanced because it poses risks to user privacy and the growing regulations around the subject, causing many companies to abandon the approach.
On the other hand, with advances in Artificial Intelligence (AI), contextual advertising has been gaining more and more effectiveness. Through this technology, the solution analyzes not only the textual content of the page that the user is visiting, but also contextual factors, such as geographic location and weather conditions. This allows the creation of solid and anonymous profiles to be used in the display of relevant ads, since it predicts intentions and behaviors with high accuracy.
For Almeida, this structure benefits everyone involved. “From the advertisers side, it is an outlet to increase click-through and conversion rates, respecting standards such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). On the consumer side, trust in brands that respect their privacy is strengthened and their experience is improved by receiving ads that are less invasive and more aligned to their interests”, he explains.
Possibilities of contextual advertising applications in the market
Many companies now have great potential for applying contextual advertising to their business strategies.The CEO of US Media cites as examples Tinder, a location-based relationship platform, and Fandom, a community of fans that offers articles, guides and forums on movies, series and games.
In the first case, the executive points out that the application could collect data on the preferences of users' profiles to display targeted content. “For example, if the person shows interest in outdoor activities or mentions sports in his biography, he may receive ads for sportswear, camping equipment or fitness events”, he points out.
As for Fandom, Almeida brings as an alternative the incorporation of native ads, which integrate perfectly with the design and content of the platform. “We are talking about sponsored articles that talk about the backstage of a movie or exclusive interviews with actors, which at the same time promote the purchase of tickets or subscriptions to streaming services”, he concludes.
