The content of an advert is related to the keyword in the search. Its subject matter is determined by the specific contextual environment, i.e. the context itself. This makes such adverts ‘unobtrusive’ for potential clients and helps them form a tolerant attitude towards them.
Almost all search engines on the Internet use contextual advertising systems to generate revenue. Back in 1999, when the issue of monetizing Google was being considered, an idea was proposed to display contextually related adverts next to search results.
When a user makes a certain query, they see the answers marked with the word “advert”. On a PC, it looks something like this:
Many users ignore the ‘advertising’ label and click on the first links in the search results. This means contextual advertising has worked, and the customer has received their traffic. This can be based not only on the search topic but also on the region and other factors.
When it comes to advertising on mobile devices, it will only work if you have a mobile version of your website. If you don’t have it, you need to turn contextual ads off for mobile users. You’ll agree that this is a very convenient and attractive tool for promoting your business.
How contextual advertising works and its features
Contextual ADS or Pay-Per-Click (PPC) are displayed on the right pages thanks to the keywords that were used to set them up. That is why they always seem relevant. By clicking on a link to the advertiser’s website, the user can see ADS that are also related to his or her interests to some extent.
The visitor can stay a while, get acquainted with the products offered, place an order, or come back later. In any case, the potential customer has learned about the website, and its owner got the engagement that he paid for when he bought the ad. This means that one of the functions of Pay-Per-Click is to notify users about a new brand (resource, product, etc.), i.e. to expand the potential clientele.
The loyalty of users, as well as their transition from potential to real customers, also depends on the quality of the landing page of the site to which the potential buyer is directed. If it is easy to view, with a clear product catalog and relevant advertising, it will increase the chances of the visitor performing the targeted action.
Online business owners who have decided to use contextual advertising are primarily interested in its cost. It depends on several factors:
- ADS topics (some of the most expensive, for example, are finance, tourism, real estate, construction, etc;)
- keywords selection (contextual or non-contextual, high or low frequency);
- selection of the ad’s display position (special placement, 1st place, dynamic or guaranteed displays);
- time of ad display (day and night), working days or weekends;
- geo-targeting setup (regional contextual advertising is usually cheaper);
- CTR (conversion rate) of the ad (high or low).
You should also keep in mind that the cost of contextual display advertising is determined on a stock basis, i.e. depends on the prices at which competitors buy clicks. Of course, ads from advertisers who paid a higher CPC will be displayed in higher positions.
At the same time, high-quality ads, even if their CPC is set lower, can occupy a higher position in the SERP. This is because the systems take into account the ad’s conversion rate (CTR).
Increasing sales and business development is the main goal of launching an advertising campaign. It is these results that are intended to justify all advertising costs. At the same time, of course, it is worth considering that not every website visitor will place an order. After all, not everyone leaves a regular store with purchases. But if you manage to get them interested, you will know where to look for the right product next time. The key benefit of a well-planned campaign is building customer awareness and trust, which can lead to future purchases.
Main types of contextual advertising: how ads look like and where they are placed
Contextual advertising can be classified according to several criteria, but in general, it’s divided into large groups. These are search and thematic advertising.
Search advertising. The peculiarity of this type is that ADS are shown based on queries. Search advertising is considered to be the most effective because the subject matter of the ADS fully corresponds to the current interests of the user.
It looks similar to regular search results, and its effectiveness depends on the correct selection of keywords, i.e. the queries for which ads will be displayed in the search. The number of ADS will depend on the device used to access the Internet.
Today, there are several options for placing search contextual ADS:
- special placement block: ADS are placed above the search results and generate the highest number of clicks;
- a block of guaranteed impressions: placed below the search results or to the right of them;
- dynamic display unit: usually located below the search results on the second and subsequent pages, and ads are displayed in rotation with ads from other users.
Thematic contextual advertising (media network). ADS that are relevant to the user’s interests are displayed on the page of a website that is a member of the Partner Network of advertising systems. These can be both thematic portals and news sites, blogs, and much more.
ADS are displayed both on the main and internal pages. As a rule, resources with higher daily traffic are chosen for this purpose.
One of contextual advertising examples is when a user is looking for information about landscape modeling software, they visit the relevant website. There they can see ADS for the sale of garden plants, water pumps, and other related products.
Thematic advertising, unlike search advertising, is less user-directed because the user is not interested in immediate results. The user might click on the link, but they might also skip it.
The following technologies have been developed to display thematic advertising:
- topical targeting: the system reads the content of website pages and displays adverts that are most relevant to the content of the pages;
- behavioral targeting: relevant ADS are selected based on the analysis of user search queries;
- remarketing/retargeting: ADS are shown to users who have already visited a particular website but have not made a purchase.
Сontextual advertising google is also distinguished depending on the format. It can be one of the following types:
- Text. ADS look like plain text with a hyperlink. They can be open or in the form of a text fragment.
- Banner. Users are shown graphic images of an advertising nature. It can be just a picture or a picture with text and a link. Images can be static, dynamic, or interactive.
- Video advertising. A specially prepared video with a hyperlink is used.
Advantages and disadvantages of contextual advertising
Naturally, this type of online advertising has both advantages and disadvantages.
Contextual advertising benefits are:
- Precise targeting of the target visitor, i.e. the user is looking for the advertised services and goods;
- Payment for the result: the advertiser pays not for the amount of times the ad has been displayed, but for the transition to his website (Cost-Per-Click);
- Quick returns: after launching the campaign, the first orders/customers might be received within a few hours;
- Minimum budget: you can make yourself known with a small amount of money. You can rely on contextual advertising alone or use it in combination with other tools;
- Flexibility of settings: budget, geography, time of display, and other parameters are taken into account;
- Powerful analytics: you will be able to use all the data and make the necessary adjustments after analysing the effectiveness of ADS;
- Relevance (correspondence to the interests of users): the visitor receives only the information that is relevant to him at a certain time;
- Convenient format of perception: ADS don’t interfere with the user at all. There is no need to switch off the video and close the window that distracts from browsing the site;
- Informative: icons, meaningful headings, explanations, and links leading to the advertiser’s website – all this allows you to convey the necessary information to a potential client.
There are many advantages of PPC, but it’s still worth focusing on the disadvantages:
- A quick effect that passes immediately: to prolong it, you need to replenish the budget and change the settings;
- A danger of budget overspending with incorrect settings: the cost of clicks can be unreasonably high due to incorrect settings, which eventually ‘eats up’ all the potential profit;
- Not suitable for certain types of business: there are niches and business areas where customers buy goods or services based on recommendations or search for them only offline.
Speaking about the advantages and disadvantages of contextual advertising, it’s also worth emphasising that everything depends on the advertiser’s goals and the specifics of their business.
What kind of business would Google Ads be a good choice for?
Google Ads is a sophisticated tool and a huge resource that is being improved all the time. Launching an advertising campaign using this system will be the best solution for:
- Entrepreneurs offering specific services;
- Online stores owners;
- Information products sellers;
- Owners of corporate websites with a clear description of services;
- Private legal and notary offices;
- Online stores that wish to sell out specific products quickly.
Before you set up contextual advertising on Google Ads tool, you need to make sure that your product is being searched for online. For this purpose, you can use other online services. After conducting proper analytics, it will become clear whether your business needs such advertising or whether the cost will be inappropriate.
