Contextual ad targeting: where to next?

‍Contextual targeting is back in fashion - for now

Contextual targeting ad sales have been the cornerstone for premium publishers and open marketplaces for quite some time now, but this approach is fast becoming a secondary tactic in today’s rapidly changing environment. With rumblings of tightening data privacy regulations and the timely demise of third-party cookies, the industry has turned to contextual tactics to plug the holes in ad products, and this area is becoming more sophisticated but also more congested with powerful AI-driven automations in this area. This is leading to a huge amount of adtech operators in the area of cohort, contextual or AI led classification tools which are fighting for publisher partnerships.

AI will commoditize contextual products

The likely scenario that will occur is a dilution in the value of contextual ad products in the same way that 3rd party behavioural data commoditized publisher visitation data in the mid-2010’s. This will likely lead to a rise in the demand for outcome-based advertising and 1st party IDs from advertisers to major publishers. In this landscape, relying solely on contextual signals means risking running a race to the bottom again and getting caught in the homogenous middle of ad products.

True 1st party identity data is the way to rise to the top

Building a deterministic first-party identity capability is the logical next step. When publishers invest in their own first-party data strategy, they gain a deeper understanding of their audiences and cultivate stronger relationships based on trust and consent. This approach not only allows for better personalization and relevance but also respects user anonymity and evolving privacy requirements.

A self-reliant identity solution translates directly into 

• Increased addressable reach
• Recognition and re-engagement of returning visitors, 
• Outcome-focused ad products that deliver real results for advertisers 
• Higher direct ad revenues and yields. 
• Reduced reliance on monetization through open marketplaces at a time when programmatic is struggling to deliver on most of its promises for high quality publishers, 
• Greater control over inventory and revenue streams at a time when this is critical given the continued distancing between publishers and social platforms. 

Moreover, by owning the data—rather than renting from external providers or purchasing third-party segments—publishers can ensure the highest possible data quality, maintain compliance with privacy regulations, and safeguard the integrity of their brand.

Ultimately, the future of premium publishing lies in forging close, data-driven partnerships with advertisers and outcome-based ad packages, all while respecting user autonomy. Contextual advertising still has a place, but it should be supported and enhanced by a robust, privacy-compliant first-party identity framework to achieve all of these. Building strong 1st party anonymised and privacy focused data foundations is the most effective way to stay competitive, drive sustainable revenue, and nurture the trusted audience relationships that make premium publishers and their content truly stand out.

Conclusion

Reliance on contextual ad products is a risk to large publishers, but the tools to build a durable first party ID are now available for publishers to own and operate.

AdFixus is the industry’s answer to deterministic, durable and cross domain 1st party identity, with all data owned fully by publishers. Reach out to learn more about how you can build your own privacy-focused future.

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