Seedtag and Nielsen today unveiled research on consumer behavior towards contextual targeting. This method consists in delivering an advertisement based on the targeted content rather than on the data of the Internet user. If he is about to watch a video on the bike, an advertisement for motorcycle equipment may appear before his viewing.
To carry out this study, 1,800 UK-based consumers were surveyed in three different interest categories: automotive, food and drink, and beauty. They had to choose one article among the sixteen proposed. They all contained advertising using different targeting strategies: by interests, by demographics, contextual or no targeting. The results show that contextual ads are much more appreciated by respondents.
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Contextual ads engage consumers more than traditional ads
Consumers are exposed to advertisements throughout their online experience. However, the contextual ones arouse their interest more than the others. The study conducted by Seedtag and Nielsen reveals that Internet users are 2.5 times more interested in an advertisement when it is contextually targeted than without targeting. They are also 32% more responsive when contextual targeting is used, rather than demographic targeting. These results show that choosing an advertisement related to the subject of the article selected by Internet users has a positive impact on their perception of it.
Ads sometimes annoy consumers, as they interrupt the browsing of content that interests them. Contextual advertisements seem to alleviate this problem. Individuals who saw contextual ads felt 40% more enthusiastic about the subject of the ad than those targeted demographically and 28% more than those who were targeted based solely on their interest in the topic.
Unlike so-called traditional ads, contextual ads complete the user’s browsing experience by being fully integrated into an article or video. They are in line with his interests at the time he consumes the content. This explains why they are more liked: 72% of participants who saw these kinds of ads said they liked them.
Also, Internet users who saw contextual advertisements were much less irritated with the object of the advertisement than the other respondents. In contrast, those who were targeted based on demographics or interests felt 60% more resentful than average.
However, the study reveals that consumers felt more confident when targeted based on their interests. This means that it is always imperative to take into account the subjects or themes to which they are receptive.
Perception and receptivity of advertisements according to the different advertising targeting on consumers. Graphic: Nielsen / Seedtag.
Contextual targeting drives consumers to take action
The study carried out by Nielsen and Seedtag indicates that there is an important link between the positive perception that consumers have of advertisements when they are contextual and the impact this has on the perception of the brand in question. Indeed, 85% of respondents who have seen a contextual insert are more open to seeing a new advertisement in the future than for an untargeted advertisement.
In general, the purpose of advertisements is to encourage Internet users to take action: buy a product, visit a site, subscribe to a service, etc. When they see advertisements in a contextual environment, they have 2.5 times more likely to take action than when no targeting is used, and 32% more than demographically targeted ads. This is particularly the case for the beauty sector. 35% of consumers who saw contextual ads in this category wanted to discover more of the brand’s products.
In parallel, the study looked at stereotypes in online advertising. She concludes that contextual targeting makes it possible to reach individuals who could be excluded with the traditional approach of predefined audiences or targeting. In beauty, men interested in the category are generally just as likely to buy the products as women. In the food category, they even have a higher purchase intention than women, especially for organic products. 41% of them were considering getting one, compared to 21% of women.
Breakdown of purchase intentions between men and women for non-organic food products, low-sugar food products and organic food products. Table: Nielsen/Seedtag.
Contextual ads, which are much more immersive, therefore offer more positive results. Thanks to them, consumers are much more likely to interact with a brand. This suggests that traditional ad targeting strategies aimed at reaching users through predefined audiences based on demographics are no longer effective enough to drive engagement. In a context where third-party cookies are disappearing, contextual targeting may well be one of the most appropriate solutions for advertisers.