Contextual Marketing

Contextual Marketing

Contextual marketing is the practice of displaying targeted ads based upon the user’s search history and browsing activity. Marketing is about communicating the right message to the right people using the right channels.

This goal was theoretical a few years ago. It is now possible with contextual marketing in a practical marketing environment.

To serve relevant ads, contextual marketing uses a technique called behavioral targeting. User searches for holiday destinations on Google and then browses a few websites.

He logs into his social media account and shows hotel and travel agency advertisements to his clients who offer different holiday destinations.

The user may think that the appearance of relevant ads on seemingly unrelated websites is pure coincidence. However, every time the user google queries, reads an article on website, or clicks on an advertisement, a cookie is stored on the computer to track the activity. This information can be used for contextual marketing purposes.

Contextual marketing empowers customers because it shows ads based on customers’ actual needs. Customers will now be the driving force behind marketing strategies.

It increases the users’ loyalty brand. Customers are more likely to give their personal information to marketers in order to receive personalized information and ads.

Contextual marketing is all about trust. The customer provides their valuable data and information to marketers for receiving quality and reliable services from them.

Marketers can strengthen their relationship with customers by not sharing that private information with third parties. When marketers are able to maintain a certain level of trust in customers then they can follow a contextual marketing program. Marketers should ensure that every action is consistent with the 4Rs in contextual marketing.

Relevant

Make sure you are addressing your audience in the context they live in. Relevant information will improve the brand value of your business and increase revenue over time. Don’t bombard your customers with irrelevant information.

Response

Customers do not wish to receive marketing information at all times. Ask permission before informing customers. You should determine the right time to take action so customers don’t feel rushed and marketing achieves its goal.

Responsible

To make their marketing campaigns more effective, business houses buy customer data. Marketing agencies are targeting customers to sell their products and services, and they are threatening their privacy. Marketers have a primary duty to protect their clients’ privacy and not disturb them unnecessarily.

Results

Profit is a short-term strategy. Marketers should be focused on long-term relationships by offering value to their customers.

Advantages of Contextual Marketing

Targeted Traffic

Advertisements are only shown to those who might be your potential target audience, but not all users. The system carefully selects the platforms on which the Ads will be displayed when launching them. It analyses users’ interests and page content to match your topic.

Measurement for Advertisement

Contextual marketing makes it easy to measure advertisement performance. Advertisement media such as Instagram, youtube, and Facebook show all information related to advertisements. Marketers can easily rework their marketing campaign by observing available data on insight and can make more effective advertising to appeal to their target customers.

Affordable

Launching contextual marketing doesn’t require a lot of manpower. In the past, marketers had to either hire many people or outsource their ads campaigns to an agency. The situation has changed. Marketers no longer need large numbers of employees. They just need the right data about customers to accomplish their goal.

Improve Customer Satisfaction

Personalized service always enhances customer satisfaction. Contextual marketing allows customers to receive messages at the right time and is personalized to their needs.

Non-Disruptive for Audience

People don’t like being interrupted during their workdays. Its functionality is completely different from traditional marketing communication. A woman who works in an office might worry about her child when she is outside of the home.

When she is discussing her problem with her friends on Facebook, she suddenly notices display ads for kindergarten that mention childcare centers for working-class women. This ad is a solution for her problem, not a disturbance.

Disadvantages of Contextual Marketing

Not Suitable For All

Contextual marketing is not a viable strategy for every business, especially for new or innovative businesses. It’s difficult to market to customers who aren’t familiar with the product. Because customers are not talking about the product, marketers cannot target them for an innovative product. For new products, traditional marketing is appropriate.

Expensive

The marketer must pay according to the keyword price. Marketers may spend more on advertising if a keyword is high-priced. Marketers need to be cautious when choosing advertising keywords.

Targeted keywords should be commercially relevant to customers. Clicks from customers are not enough to guarantee revenue. Marketers should be able to meet the customer’s needs through their products and services.

Need a Professional

Contextual marketing cannot be run by a layman. The business house should hire qualified people or outsource their contextual marketing program to an ads agency. Launching an effective campaign using contextual marketing, takes multiple revisions. It is important not to lose heart if you fail a few times. They must be determined to learn something new every day.

Providing a Personalized Experience

Digital customization and personalization are easy. To deliver dynamic content to customers, marketers use digital customer information. Personalization and customization in the physical space used to heavily rely on human interaction.

Companies can now use the IoT infrastructure and AI infrastructure to bring digital capabilities to personalize marketing actions into the physical space without the need for human intervention.

Three levels of custom-made marketing are possible. The first level of marketing is informational. Marketers at this level provide the right offer, whether it is a marketing message, product selection, or price promotion.

Interactive marketing is the second level. Here, marketers create a two-way communication channel and interact intelligently with customers. Immersive marketing is the highest level, where marketers create sensory experiences for customers.

Personal Information

In its most limited application, location-based marketing is the most popular type of information marketing. It uses one of the most valuable metadata, geolocation. These data are usually captured using the global positioning system (GPS), which is typically used by customer smartphones.

Marketers often use geofencing to market their data. This is a practice that creates a virtual perimeter around an area of interest (such as a school, airport, or retail store) and then broadcasts targeted messages to those within that perimeter. Geofencing is available on all major social media platforms like Facebook and Google. This allows campaigns to be targeted at a particular area.

Customized Interaction

It is multilayered contextual marketing. Customers are not contacted directly to make a purchase through location-based offers. Instead, customers are offered the chance to respond to the message that they have received about their location. Based on the response, companies will send another message to them, creating a dialog.

This approach allows companies to trigger customers to take the next step in their customer journey by offering them incentives. This approach has the advantage of making customers more likely to purchase products after they have had multiple interactions over a long journey.

Companies can use gamification principles to make context marketing more interactive. Shopkick, an app that rewards shoppers for shopping, works with American Eagle and other retailers to offer them incentives to make their purchases. The app rewards people for every step. Shoppers can earn rewards for walking into the store and scanning a barcode. They can also try on clothes in the fitting rooms.

Total Immersion

Marketers can personalize the space by allowing customers to feel completely immersed in it using sensors or other technologies. Customers should be able to experience digital experiences while in brick-and-mortar stores.

For immersive in-store navigation, big-box retailers use augmented reality and geolocation data. Lowe’s mobile application is an example. The mobile app allows shoppers to create a shopping cart and then add the items they wish to buy.

After they’re done, shoppers can activate the Augmented Reality feature to see a yellow-colored path on the ground in front of them. Customers will be able to find the products they are looking for in the shortest time possible by following the route.

Immersive, contextual marketing aims to blur the lines between digital and physical worlds in order for customers to have a seamless experience across all channels. This allows us to combine the personalization power and experiential nature of brick-and-mortar establishments with digital technology.

To establish AI-powered contextual advertising, it is essential to create a connected ecosystem of sensors or devices at the POS and on customer premises. Marketers will need to only define triggers once the infrastructure has been established.

Marketers can find the right person nearby to the sensors and provide the right products and messages. Marketers can interact with the person and create an immersive experience for them.

Frequently Asked Questions

What is contextual search marketing?

Contextual marketing is a tactic for showing advertising to users based on their current online behavior or searched keywords. It works on websites and other media, including content in mobile browsers.

How does contextual marketing work?

Contextual advertising analyzes content such as text, speech, pictures, and geolocation in real-time using AI and deep-learning algorithms. It employs behavioral targeting to deliver relevant or contextual adverts to people of the target audience based on their preferences.

What is targeted advertising?

Targeted advertising is a type of online advertising that focuses on a customer’s unique characteristics, interests, and preferences. Companies employ targeted advertising to ensure that their advertisements are seen by the right people. Advertising specialists gather data on consumer surfing habits, profiles created on company websites, shopping habits, and other demographic data.

Why targeted advertising is bad?

These days, data is a company’s most valuable asset. Online data is used to make major commercial decisions. As a result, companies spend a lot of money collecting user data. Many Internet users believe that targeted advertisements violate their privacy.

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