Basics of contextual advertising on streaming TV (10 things you should know)

In the evolving landscape of digital advertising, contextual targeting stands out as a sophisticated strategy especially well-suited for streaming TV. This approach involves placing ads within a content environment that directly relates to the ad content itself, leveraging the context to enhance viewer engagement and ad effectiveness. Here are must-know insights to understand contextual advertising on streaming TV.

Understanding contextual advertising

Contextual advertising operates by analyzing the environment or content and selecting ads pertinent to that environment. Depending on the type of media, this strategy can range from simple keyword matching—where ads are displayed based on text on a webpage—to sophisticated content analysis in video streaming where ads are matched to the video content genres or the emotional tone of the show. Contextual advertising on streaming TV involves displaying ads that are relevant to the content being streamed by the viewer. Unlike traditional models that rely on audience data, contextual advertising focuses on the content at hand, offering a privacy-centric approach to ad targeting.

The mechanics of buying contextual segments

Purchasing contextual segments involves several steps:

Step 1: Content identification

Initially, the content needs to be analyzed and categorized. This is commonly achieved via keywords or metadata, but more sophisticated strategies leverage AI to understand the context and nuances of content. For instance, Wurl’s BrandDiscovery analyzes video content to determine the precise emotion, brand safety, and content of the scene.

Step 2: Segment creation

Once content is analyzed, it is segmented into various categories based on its characteristics.

Contextual segments are often bought through programmatic platforms. Advertisers use Demand Side Platforms (DSPs) to automate the buying of ad space that aligns with selected contextual segments. These DSPs bid on ad spaces that meet the specified criteria in real-time, ensuring that ads are displayed in the most relevant contexts.

This is only possible because publishers use SSPs to manage their ad inventory and make it available to potential buyers. SSPs communicate with DSPs to match ad requests with available inventory based on the contextual data provided.

Step 3: Ad matching

Advertisers select which segments align with their brand or campaign goals. For example, a sports apparel brand may want to target high joy content, while a travel agency might look for content featuring high trust.

Enhancing viewer engagement

Contextually relevant ads tend to resonate more with viewers, maintaining engagement and enhancing the overall ad experience. Studies suggest that ads relevant to the content being watched can significantly increase viewer attention and interaction. This phenomenon has been covered by AdAge’s dive into how contextual is driving ad effectiveness.

A recent study conducted by the AVCA (Alliance for Video-Level Contextual Advertising) provided independent verification for the importance of contextual ads. When ads are contextually misaligned with content:

• More than half (54%), of respondents were less interested in the brand and products found in contextually misaligned ads.
• More than one-third of viewers liked the brand less and paid less attention when an ad was placed in unsuitable environments.

Safeguarding brand safety

In streaming TV, where the ecosystem is not set up to provide much transparency for where ads actually run, it’s crucial that ads don’t appear next to inappropriate content. This not only protects the brand’s reputation but also ensures that audiences don’t associate the brand with negative images or tones.

Deep Content Understanding

Thanks to advances in technology like AI, advertisers can now analyze content deeply to understand its themes and emotions. This ensures ads don’t end up next to content that might contradict a brand’s message or upset its audience. For example, a health-focused brand would avoid advertising during a show that features drug use or a family-focused brand might want to avoid profanity.

Building and Maintaining Trust

At its core, brand safety is about building trust. When customers see a brand consistently appearing in appropriate and positive contexts, their trust in the brand grows. This trust is essential for developing long-term customer relationships and loyalty.

Improved ad effectiveness

Contextual targeting allows for the delivery of advertisements at moments when viewers are most likely to be receptive, based on the content they are engaged with. For example, targeting ads based on emotions has shown significant improvements in how effective these ads are. This strategy involves matching the emotional tone of ads with the shows or content being watched, which helps to engage viewers better and increase the impact of the campaigns. Let’s explore two case studies for how PMG and Monks utilized this approach to achieve outstanding results.

Case Study: PMG uses contextual targeting drive sales for a Quick Service Restaurant

Background: PMG aimed to boost sales and visits for a Quick Service Restaurant (QSR) during a time when fewer people were eating out due to higher prices.

Strategy Implementation: PMG used BrandDiscovery’s emotion targeting to place their client’s ads alongside TV content that made viewers think about food and feel hungry. They also used technology from Innovid to deliver a dynamic offer at just the right time to catch viewers’ attention.

Results: This approach led to a 40% increase in restaurant visits and a 48% rise in sales. The use of emotion targeting proved to be the most effective strategy for attracting more customers to the restaurant.

Case Study: Monks uses contextual targeting to drive KPIs for a Financial Technology Company

Background: Monks needed to increase awareness and interest in a financial technology brand, aiming to attract an engaged audience that would resonate with the brand’s message.

Strategy Implementation: Monks collaborated with BrandDiscovery to target streaming TV ads that matched the emotional tone of ongoing TV programs. This method aimed to make ads feel like part of the show rather than an interruption.

Results: By aligning the ads with the emotional content of TV shows, Monks saw a 7x increase in aided brand awareness, a 4x improvement in how favorably viewers saw the brand, and a 2x increase in purchase intent.

Privacy considerations

Contextual targeting does not rely on personal viewer data, making it an important strategy in the face of increasing privacy regulations. This approach respects viewer privacy while still allowing for effective ad targeting. The IAB Europe guide on contextual advertising has laid down a comprehensive framework, illustrating how this approach can provide a robust alternative to traditional targeting methods, enhancing viewer engagement and ad relevance without relying on personal user data, thereby ensuring compliance with strict privacy regulations like the GDPR.

The AVCA report on contextual targeting in streaming TV underscores these points by highlighting the limitations of traditional demographic-based targeting due to fragmented audiences and the complications arising from transitions like IPv6. The AVCA argues that AI’s role in analyzing content for emotional and thematic relevance is crucial, not just for aligning ads with viewer sentiments but also for ensuring brand safety and improving ad resonance.

Conclusion: 10 things you should know about contextual advertising

1. What is Contextual Advertising?

Contextual advertising involves placing ads that are directly relevant to the content being viewed. This method ranges from simple keyword matching to complex analyses where ads correspond with the themes or emotional tones of streaming TV content.

2. Privacy-Centric Approach

Unlike traditional advertising that may rely on viewer data, contextual advertising focuses on the content itself, providing a privacy-centric solution in ad targeting.

3. Content Identification

More sophisticated processes start with using AI and machine learning to analyze and categorize the content deeply at the scene-level, assessing factors beyond mere keywords or metadata.

4. Segment Creation

After content analysis, it is segmented based on its characteristics, such as emotions or genre elements, preparing it for targeted ad placements.

5. Ad Matching

Advertisers choose segments that align with their brand or campaign goals, ensuring that their ads resonate with the content’s audience.

6. Programmatic Buying

Contextual segments are purchased through programmatic platforms where Demand Side Platforms (DSPs) automate the ad buying process, matching ads with content in real-time based on the defined criteria.

7. Integration with Supply-Side Platforms (SSPs)

Publishers manage ad inventory through SSPs, which communicate with DSPs to ensure ads match with appropriate contextual data.

8. Enhancing Viewer Engagement

Ads that are relevant to the content tend to engage viewers more effectively, keeping their attention and potentially enhancing the overall viewer experience.

9. Safeguarding Brand Safety

Contextual advertising helps ensure that ads do not appear next to inappropriate content, protecting the brand’s image and maintaining audience trust.

10. Building and Maintaining Trust

Consistent alignment of ads with appropriate and positive content builds viewer trust in the brand, crucial for long-term customer relationships and loyalty.