Contextual ad targeting paves the way for new opportunities
Advertisers and marketers are always looking for ways to remain competitive in the current digital landscape. The challenge of signal loss continues to prompt marketers to rethink their current and future strategies. With many major browsers phasing out support for third-party cookies due to privacy and data security concerns, marketers will need to find new ways to identify and reach their target audience. Contextual ad targeting offers an innovative solution; a way to combine contextual signals with machine learning to engage with your consumers more deeply through highly targeted accuracy. Contextual advertising can help you reach your desired audiences amidst signal loss – but what exactly is contextual advertising, and how can it help optimize digital ad success?
In a Q&A with our experts, Jason Andersen, Senior Director of Strategic Initiatives and Partner Solutions with Experian, and Alex Johnston, Principal Product Manager with Yieldmo, they explore:
- The challenges causing marketers to rethink their current strategies
- How contextual advertising addresses signal loss
- Why addressability is more important than ever
- Why good creative is still integral in digital marketing
- Tips for digital ad success
By understanding what contextual advertising can offer, you’ll be on the path toward creating powerful, effective campaigns that will engage your target audiences.
Check out Jason and Alex’s full conversation from our webinar, “Making the Most of Your Digital Ad Budget With Contextual Advertising and Audience Insights” by reading below. Or watch the full webinar recording now!
Macro impacts affecting marketers
How important is it for digital marketers to stay informed about the changes coming to third-party cookies, and what challenges do you see signal loss creating?
Jason: Marketers must stay informed to succeed as the digital marketing landscape continuously evolves. Third-party cookies have already been eliminated from Firefox, Safari, and other browsers, while Chrome has held out. It’s just a matter of time before Chrome eliminates them too. Being proactive now by predicting potential impacts will be essential for maintaining growth when the third-party cookie finally disappears.
Alex: Jason, I think you nailed it. Third-party cookie loss is already a reality. As regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) take effect, more than 50% of exchange traffic lacks associated identifiers. This means that marketers have to think differently about how they reach their audiences in an environment with fewer data points available for targeting purposes. It’s no longer something to consider at some point down the line – it’s here now!
Also, as third-party cookies become more limited, reaching users online is becoming increasingly complex and competitive. Without access to as much data, the CPMs (cost per thousand impressions) that advertisers must pay are skyrocketing because everyone is trying to bid on those same valuable consumers. It’s essential for businesses desiring success in digital advertising now more than ever before.
Contextual ad targeting: A solution for signal loss
How does contextual ad targeting help digital marketers find new ways to reach and engage with consumers? What can you share about some new strategies that have modernized marketing, such as machine learning and Artificial Intelligence (AI)?
Jason: We’re taking contextual marketing to the next level with advanced machine learning. We are unlocking new insights from data beyond what a single page can tell us about users. As third-party cookies go away, alternative identifiers are coming to market, like RampID and UID2. These are going to be particularly important for marketers to be able to utilize.
As cookie syncing becomes outdated, marketers will have to look for alternative methods to reach their target audiences. It’s essential to look beyond cookie-reliant solutions and use other options available regarding advertising.
Alex: I think, as Jason alluded to, there’s a renaissance in contextual advertising over the last couple of years. If I were to break this down, there are three core drivers:
- The loss of identity signals. It’s forcing us to change, and we must look elsewhere and figure out how to reach our audiences differently.
- There have been considerable advances in our ability to store and operate across a set of contextual signals far more extensive than anything we’ve ever worked with in the past and in far more granular ways. That’s a huge deal because when it comes to machine learning, the power and the impact of those machine learning models are entirely based on how extensive and granular the data set is that you can collect. Machine learning can pull together critical contextual signals and figure out which constellations, or which combinations of those signals, are most predictive and valuable to a given advertiser.
- We can tailor machine learning models to individual advertisers using all those signals and find patterns across those in ways that were previously impractical or unfeasible. The transformation is occurring because of our ability to capture much more granular data, operate across it, and then build models that work for advertisers.
Addressability: Connect your campaigns to consumers
How does advanced contextual targeting help marketers reach non-addressable audiences?
Jason: Advanced contextual targeting allows us to take a set of known data (identity) and draw inferences from it with all the other signals we see across the bitstream. It’s taking that small seed set of either, customers that transacted with you before that you have an identity for, or customers that match whom you’re looking for. We can use that as a seed set to train these new contextual models. We can now look at making the unknown known or the unaddressable addressable. So, it’s not addressable in an identity sense, it is addressable in a contextual or an advanced contextual sense that’s made available to us, and we can derive great insight from it.
One of the terms I like to use is contextual indexing. This is where we take a set of users we know something about. So, I may know the identity of a particular group of households, and I can look at how those households index against any of the rich data sets available to us in any data marketplace, for example, the data Yieldmo has. We can look at how that data indexes to those known users to find patterns in that data and then extrapolate from that. Now we can go out and find users surfing on any of the other sites that traditionally don’t have that identifier for that user or don’t at that moment in time and start to be able to advertise to them based on the contextually indexed data.
Historically, we’ve done some contextual ad targeting based on geo-contextual, and this is when people wanted to do one to one marketing, and geo-contextual outperformed the one to one. But marketers weren’t ready for alternatives to one to one yet. We want marketers to start testing these solutions. Advertisers must start trying them, learning how they work, and learn how to optimize them because they are based on a feedback loop, and they’re only going to get better with feedback.
Alex: Jason, you described that perfectly. I think the exciting opportunity for many people in the industry is figuring out how to reach your known audience in a non-addressable space, that is based on environmental and non-identity based signals, that helps your campaign perform. Your known audience are people that are already converting – those who like your products and services and are engaged with your ads. Machine learning advancements allow you to take your small sample audience and uncover those patterns in the non-addressable space.
It’s also worth noting that in this world in which we are using seed audiences, or you are using your performing audiences to build non-addressable counterpart targeting campaigns, having high-quality, privacy-resilient data sets becomes incredibly important. In many cases, companies like Experian, who have high quality, deep rich training data, are well positioned to support advertisers in building those extension audiences. As we see the industry evolve, we’re going to see some significant changes in terms of the types of, and ways in which, companies offer data, and make that available to advertisers for training their models or supporting validation and measurement of those models.
Jason: Addressable users, the new identity-based users, are critical to marketers’ performance initiatives. They’re essential to training the models we’re building with contextual advertising. Together, addressable users and contextual advertising are a powerful combination. It’s not just one in isolation. It’s not just using advanced contextual, and it’s not just using the new identifiers. It’s using a combination to meet your performance needs.
It’s imperative to start thinking about how you can begin building your seed audiences. What can you start learning from, and how do you put contextual into play today? You are looking to build off a known set and build a more advanced model. These can be specialized models based on your data. You can hone in and create a customized model for your customer type, their profile, and how they transact. It’s a greenfield opportunity, and we’re super excited about the future of advanced contextual targeting.
Turn great creative into measurable data points
Why does good creative still play an integral part in digital advertising success?
Jason: Good creative has always been meaningful. It’s vital in getting people to click on your ad and transact. But it’s becoming increasingly important in this new world that we’re talking about, this advanced contextual world. The more signal that we can get coming into these models, the better. Good creative in the proper ad format that you can test and learn from is paramount. It comes back to that feedback loop. We can use that as another signal in this equation to develop and refine the right set of audiences for your targeting needs.
Alex: If you imagine within the broader context of identity and signal loss, creative and ad format becomes incredibly powerful signals in understanding how different audiences interact with and engage with different creative. In the case of the formats that serve on the Yieldmo exchange, we’re collecting data every 200 milliseconds around how individual users are engaging with those ads. Interaction data like the user scrolling back or the number of pixel seconds they stay on the screen, fills this critical gap between video completes and clicks. Clicks are sparse and down the funnel, and views and completes are up the funnel. All those attention and creative engagement type metrics occupy the sweet spot where they’re super prevalent, and you can collect them and understand how different audiences engage with your ads. That data lets you build powerful models because they predict all kinds of other downstream actions.
Throughout my career, I learned that designing or tailoring your creative to different audience groups is one of the best ways to improve performance. We ran many lift studies with analysis to understand how you can tailor creative customized for individual audiences. That capability and the ability to do that on an identity basis is starting to deteriorate. The ability to do that using a sample of data or using a smaller set of users, either where you’re inferring characteristics or you’re looking at the identity that does exist in a smaller group, becomes powerful for being able to customize your creative to tell the right story to the right audience. When you layer together all the interaction data collected at the creative level on top of all the contextual and environmental signals, you can build powerful models. Whether those are driving proxy metrics, or downstream outcomes, puts us in a powerful position to respond to the broader loss of identity that we’ve relied on for so many years.
Our recommendations for marketers for 2023 and beyond
Do you have recommendations for marketers building out their yearly strategies or a campaign strategy?
Jason: Be proactive and start testing and learning these new solutions. I mentioned addressability and being in the right place at the right time. That’s easier in today’s third-party cookie world. But as traditional identity is further constricted, you will have these first-party solutions that will not be at scale, so you’re less likely to find your user at the scale you want. It would be best if you thought about how to reach that user at the right place at the right time. They may not be seen from an identity basis. They might not be at the right place at the right time when you were delivering or trying to deliver an ad. But you increase your chance of reaching them by building these advanced contextual targeting audiences using this privacy-safe seed ‘opted-in’ user set; this is a way to cast that wider net and achieve targeted scale.
Alex: Build your seed lists, test your formats with different audiences, and understand what’s resonating with whom. Take advantage of some of the pretty remarkable advances in machine learning that are allowing us, really, for the first time to fully uncork the potential and the opportunity with contextual in a way that we’ve never done before.
Jason: At the end of the day, it’s making the unaddressable addressable. So, it’s a complementary strategy; having that addressable piece will feed the models. But also, that addressable piece still needs to be identity-based, addressable still needs to be part of your overall marketing strategy, and you need to complement it with other strategies like advanced contextual targeting. The two of them together are super complimentary. They learn from each other, and it’s a cyclical loop. Now is the time to take advantage and start testing and understanding how these solutions work.
We can help you get started with contextual ad targeting
Contextual advertising can help you stay ahead of the curve, identify your target audience, and continue to drive conversions despite signal loss. We’ve partnered with Yieldmo to help make sure that your marketing campaigns are reaching the right target audiences on the platforms that are most relevant. To get started with contextual ad targeting to reach the right audience at the right time and drive conversions, contact our marketing professionals. Let’s get to work, together.
Find the right marketing mix in 2023
Check out our webinar, “Find the right marketing mix with rising consumer expectations.” Guest speaker, Nikhil Lai, Senior Analyst from Forrester Research, joins Experian experts Erin Haselkorn, and Eden Wilbur. We discuss:
- New data on the complexity and uncertainty facing marketers
- Consumer trends for 2023
- Recommendations on finding the right channel mix and the right consumers
About our experts
Jason Andersen, Senior Director, Strategic Initiatives and Partner Solutions, Experian
Jason Andersen heads Strategic Initiatives and Partner Enablement for Experian Marketing Services. He focuses on addressability and activation in digital marketing and working with partners to solve signal loss. Jason has worked in digital advertising for 15+ years, spanning roles from operations and product to strategy and partnerships.
Alex Johnston, Principal Product Manager, Yieldmo
Alex Johnston is the Principal Product Manager at Yieldmo, overseeing the Machine Learning and Optimization products. Before joining Yieldmo, Alex spent 13 years at Google, where he led the Reach & Audience Planning and Measurement products, overseeing a 10X increase in revenue. During his time, he launched numerous ad products, including YouTube’s Google Preferred offering. To learn more about Yieldmo, visit www.Yieldmo.com.
Latest posts
Tapad expands linear TV analytics solution, enabling optimal reach and frequency across TV and digital platforms NEW YORK, Jan. 24, 2017 /PRNewswire/ — Tapad, now a part of Experian, has partnered with WideOrbit, the leading provider of advertising management software for media companies, to develop the industry's first programmatic TV-buying platform powered by a device graph. Tapad is the leading provider of unified, cross-screen marketing technology solutions and was first to market with a device graph, the Tapad Device Graph™. WideOrbit's robust supply platform and industry-leading footprint offers access to premium TV inventory on top networks, reaching more than 99 million households across local affiliates. The partnership pairs Tapad's demand-side technology with WideOrbit's supply-side inventory. As a result, marketers can leverage cross-device audiences in their TV buys for the first time. Additionally, integrating the Tapad Device Graph™ with digital feedback loops and audiences both accelerates optimization and enables precise audience discovery for TV marketers. "The integration of WideOrbit's quality TV supply takes orchestrated cross-screen media buys to the next level," said Marshall Wong, Tapad's SVP of TV market development. "Marketers can now optimize TV campaigns within days instead of weeks. This also untethers them from buying against generic demographics like age and gender. By allowing brands to employ their own CRM or third-party data, we can move them much closer to audiences who will take action." "Integrating Tapad's device graph with WideOrbit's programmatic marketplace delivers enormous value to marketers looking to add TV to cross-device campaigns," said Ian Ferreira, EVP of programmatic at WideOrbit. "Television still delivers the most efficient reach of any medium, and Tapad's platform now allows marketers to purchase premium broadcast inventory that extends the power of cross-screen campaigns to TV with a single, unified solution." "Our clients build lasting relationships with consumers through thoughtful and pioneering marketing," said Jeff Giacchetti, VP of digital at Mediavest Spark. "The strategic partnership of demand-side technology and supply-side inventory makes it easier for brands to find efficient, incremental reach and are critical in this endeavor." For more information about Tapad's cross-platform advertising solutions, please visit https://www.experian.com/marketing/consumer-sync Contact us today!
The top of the year is always a great time of reflection. As our team has been excitedly preparing for our first webinar of 2017, I’ve been able to reflect on the many changes I’ve seen happen internally and externally in the digital marketing landscape, especially those related to shifting roles and breadth of knowledge. Nearly twenty years ago, when I was first getting started, most marketers knew the four Ps (price, product, promotion and place). We used to be able to come up with ideas, execute in a couple of channels, pop a bottle, and celebrate success. Tech folks tended to develop software based on requirements developed by project managers and engineers, and congratulated themselves when a project was fully tested, and delivered on time and under budget (with few, if any, bugs). Then came the big disruption of the digital age. And the lines between marketing and technology became blurred. The marriage of marketing and technology increasingly requires shared responsibilities and deeper knowledge of both areas. Marketers must be much more versed in technology and how it exists to provide support in reaching distracted and elusive customers. Developers must understand fundamental marketing concepts and be open to approaching enhancements based on how a new feature would solve real-life marketing challenges. If either of these stakeholders say “that’s not my job”, and refuses to learn, the brand’s ability to provide a consistent, customer-centric experience will suffer. Ultimately, no matter how many systems are in place, human beings—from your internal team to your audience—guide programs. That being said, personal development—from classes to reading books and blogs to networking—is critical and something you MUST make time for, whether you’re the email marketing manager or the director of product development. But let’s be real: in the busyness of daily life, you probably can’t get away from your desk for lunch most days. However, even if you have to slot time on your Outlook calendar, it is worth it in order to foster a broader and more accurate view of your program and the industry. This curious and thirsty mindset is also a top predictor of success (assuming you aren’t born into a dynasty). Don’t believe me? The greatest minds of our time, from Warren Buffett to Oprah Winfrey spend a LOT of time on personal growth through a very simple activity…reading[i]. So how can you be a lifelong learner, build your skills and stand out from the crowd professionally? Take your growth by the reins and do the following: Attend webinars: There are webinars related to everything from how to give webinars, to specific areas including contextual marketing and testing. Tip: Try not to multi-task during the webinar, to be sure you are fully immersed in the content. Attend industry conferences: Get around likeminded people who speak your language. Be inspired and challenged by learning what they do in their own verticals, and repurposing it to fit your audience, as appropriate. Blogs, whitepapers: At least bi-weekly, take time to expose yourself to thought leadership. I get a lot of great ideas and industry knowledge from what others talk about—not that I always agree, but that’s the point: surround yourself with other ideas. But remember, you only get to know those ideas by purposefully exposing yourself to them. Internal relationship building – My mother’s example at work became my template once I joined corporate America. She got to know everyone on campus at Loyola Marymount, from professors to nuns, staff and students. It gave her a great idea of who did what outside of her wheelhouse, and expanded her overall knowledge. It has served me well to get to know everyone in my organization – in speaking with tech folks, I gain a deeper understanding of how our software works and what the plans are, and vice versa (they get more insight as to how we are actually using our technology, and what would truly be helpful on a daily basis). In your own organization, you’ll learn to navigate personalities and roles when you seek out colleagues who are communicating with your audience across other channels. Ideally, you’ll be able to share resources, gain inspiration, and build efficiencies all around. Don’t forget – you are an important part of your company’s success and, just like your marketing programs and technology enhancements, you must also be continually developed. I dug more into personal development and how it fits into your overall campaign strategy in our January webinar, Trends are Dead Ends: Create a clear road to success with our 2017 planning tips. My co-host was Justin Foster, co-Founder of Liveclicker, and we took a deep dive into tried and true strategic and tactical tips to help make you and your marketing programs successful in the coming year. Our webinar definitely steered away from trends and towards the basics, and being a lifelong learner is a basic for success. If you didn't get a chance to catch it, you can view it here! [i] Observer article, “Bill Gates, Warren Buffett, and Oprah Winfrey All Use the 5-Hour Rule” by Michael Simmons
Global Engineering Team Staffing Up New Oslo Hub; Nordic Operational Team Also Slated for Q1'17 NEW YORK, Jan. 11, 2017 /PRNewswire/ — Tapad, now a part of Experian, the leader in cross-device marketing technology, is opening an office in downtown Oslo, Norway, effective January 16, 2017. This development reflects Tapad's continued growth following its acquisition by the Telenor Group in early 2016. Tapad Oslo will be comprised of a globally-focused engineering team as well as an upcoming operational headquarters for the region. Jeff Olchovy, a senior Tapad developer and one of its earliest employees, will forge the company's Nordic engineering presence by supporting the build-out of the team. The initial hiring plan of more than 20 open positions includes roles such as Head of Engineering, Senior Software Engineers and Solution Engineers. Plans for Tapad's Nordic Region business line, including its leadership, will be announced within the first quarter of 2017. "Given the caliber of technical talent and our extensive network in the region, Oslowas the logical choice at this stage of our growth," says Dag Liodden, Tapad CTO and co-founder. "This enables us to continue building out our innovative team on a global scale in a region that is close to our hearts and minds." In collaboration with its New York-based developers, Tapad's Oslo-based engineers will continue to advance the company's renowned product portfolio, such as the Tapad Device Graph™. An early adopter of Scala and big data processing technologies, Tapad has long been an influencer in U.S. tech. "As the head of our platform group, which daily processes several petabytes of data and is the foundation for all of our real-time systems, Jeff is a highly respected engineer," said Pål Høye, Tapad's senior vice president of engineering. "Given his experience and skillset, he is ideally suited to find and lead an innovative team focused on building the industry-leading products we are known for." Tapad has 15 offices in six countries with more than 200 employees worldwide. For more information on Tapad and to explore open positions, visit www.experian.com/careers/ In 2016, Tapad launched an entrepreneurial mentorship initiative, the Propeller Program, which selected five Norwegian startups to share Tapad's New York Cityworkspace, receive C-level guidance and help establish a U.S. presence. To learn more about the Propeller Program, visit www.tapad.com/propeller-program. About TapadTapad Inc. is a marketing technology firm renowned for its breakthrough, unified, cross-device solutions. With 91.2% data accuracy confirmed by Nielsen, the company offers the largest in-market opportunity for marketers and technologies to address the ever-evolving reality of media consumption on smartphones, tablets, home computers and smart TVs. Deployed by agency trading desks, publishers and numerous Fortune 500 brands, Tapad provides an accurate, unified approach to connecting with consumers across screens. In 2015, Tapad began aggressively licensing its identity management solution, the Tapad Device Graph™, and swiftly became the established gold-standard throughout the ad tech ecosystem. Tapad is based in New York and has offices in Atlanta, Boston, Chicago, Dallas, Detroit,Frankfurt, London, Los Angeles, Miami, Minneapolis, San Francisco and Toronto. Tapad's numerous awards include: EY Entrepreneur of The Year (East Coast) 2014, among Forbes' Most Promising Companies two year's running, Deloitte's Technology Fast 500, Crain's Fast 50, Entrepreneur 360, Digiday Signal Award, iMedia ASPY Award and a MarCom Gold Award.