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 in just the first six months of 2024. Within this market movement, it is possible to identify the main strategies of the sector currently and predict possible trends that are expected to gain momentum in the second half of the year and at the beginning of 2025. This is the case of contextual advertising.
According to Bruno Almeida, CEO ofUS Media, the leading media solutions hub in Latin America, the approach will transform the future of the segment. "With Google moving forward to block third-party tracking cookies in Chrome, companies need to find ways to continue delivering relevant ads without access to data collected on sites outside their domain. Contextual advertising is the main one, as it opens up space for new formats and possibilities," it says.
How does contextual advertising work?
Cookies are personal information collected during website visits and shared with other companies, enabling personalized advertising. However, in the last four years, the discussion about blocking this data has advanced due to the privacy risks for users and the increasing regulations around the topic, leading many companies to abandon the approach.
On the other hand, with advances in Artificial Intelligence (AI), contextual advertising has been becoming increasingly effective. Through this technology, the solution analyzes not only the textual content of the page 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 displaying relevant ads, as it predicts intentions and behaviors with high accuracy.
For Almeida, this structure benefits everyone involved. "On the advertiser's side, it is a way to increase click-through rates and conversions, while respecting regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). On the consumer's side, trust in brands that respect their privacy is strengthened, and their experience is improved by receiving less invasive ads that are more aligned with their interests," he explains.
Possibilities of contextual advertising applications in the marketCurrently, many companies already have great potential for applying contextual advertising in their business strategies. The CEO of US Media cites Tinder, a location-based dating platform, and Fandom, a fan community that offers articles, guides, and forums about movies, series, and games, as examples.
In the first case, the executive highlights that the application could collect data about users' profile preferences to display targeted content. "For example, if the person shows interest in outdoor activities or mentions sports in their biography, they may receive ads for sportswear, camping equipment, or fitness events," he notes.
Regarding Fandom, Almeida suggests incorporating native ads that seamlessly integrate with the platform's design and content. "We are talking about sponsored articles that discuss behind-the-scenes of a movie or exclusive interviews with actors, which also promote ticket purchases or subscriptions to streaming services," he concludes.
