Contextual advertising is a form of targeted advertising Targeted advertising is a type of advertising whereby advertisements are placed so as to reach consumers based on various traits such as demographics, purchase history, or observed behavior for advertisements Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries appearing on websites A website is a collection of related web pages, images, videos or other digital assets that are addressed with a common domain name or IP address in an Internet Protocol-based network. A web site is hosted on at least one web server, accessible via the Internet or a private local area network or other media, such as content displayed in mobile browsers A mobile browser, also called a microbrowser, minibrowser or wireless internet browser , is a web browser designed for use on a mobile device such as a mobile phone or PDA. Mobile browsers are optimized so as to display Web content most effectively for small screens on portable devices. Mobile browser software must be small and efficient to. The advertisements themselves are selected and served by automated systems based on the content displayed to the user.
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How contextual advertising works
A contextual advertising system scans the text of a website for keywords Keywords are the words that are used to reveal the internal structure of an author's reasoning. While they are used primarily for rhetoric, they are also used in a strictly grammatical sense for structural composition, reasoning, and comprehension. Indeed, they are an essential part of any language and returns advertisements to the webpage based on what the user is viewing.[1] The advertisements may be displayed on the webpage or as pop-up ads Pop-up ads or pop-ups are a form of online advertising on the World Wide Web intended to attract web traffic or capture email addresses. It works when certain web sites open a new web browser window to display advertisements. The pop-up window containing an advertisement is usually generated by JavaScript, but can be generated by other means as. For example, if the user is viewing a website pertaining to sports and that website uses contextual advertising, the user may see advertisements for sports-related companies, such as memorabilia dealers or ticket sellers. Contextual advertising is also used by search engines A Web search engine is a tool designed to search for information on the World Wide Web. The search results are usually presented in a list and are commonly called hits. The information may consist of web pages, images, information and other types of files. Some search engines also mine data available in databases or open directories. Unlike Web to display advertisements on their search results pages based on the keywords in the user's query.
Service providers
Google AdSense AdSense is an advertisement application run by Google. Website owners can enroll in this program to enable text, image, and more recently, video advertisements on their websites. These advertisements are administered by Google and generate revenue on either a per-click or per-impression basis. Google beta tested a cost-per-action service, but was the first major contextual advertising program. It works by providing webmasters with JavaScript JavaScript is a scripting language used to enable programmatic access to objects within other applications. It is primarily used in the form of client-side JavaScript for the development of dynamic websites. JavaScript is a dialect of the ECMAScript standard and is characterized as a dynamic, weakly typed, prototype-based language with first-class code that, when inserted into webpages, displays relevant advertisements from the Google inventory of advertisers. The relevance is calculated by a separate Google bot, Mediabot, that indexes the content of a webpage. Recent technology/service providers have emerged with more sophisticated systems that use language-independent proximity pattern matching algorithm to increase matching accuracy.[2]
Since the advent of AdSense, Yahoo! Publisher Network The Yahoo! Publisher Network is a beta network launched on August 2, 2005 by Yahoo!. As the service is currently in Beta, it is currently only accepting US-Based publishers; it is believed that Yahoo! will expand this when the program comes out of Beta. YPN provides cost per click contextual advertising, similar to Google Adsense, as well as, Microsoft adCenter Microsoft adCenter , is the division of the Microsoft Network (MSN) responsible for MSN's advertising services. Microsoft adCenter provides pay per click advertisements, Ad-in-Motion and others have been gearing up to make similar offerings.
Impact
Automatically generated contextual ads sometimes fail to deliver the products they describeContextual advertising has made a major impact on earnings of many websites. Because the advertisements are more targeted, they are more likely to be clicked, thus generating revenue for the owner of the website (and the server of the advertisement). A large part of Google's earnings is from its share of the contextual advertisements served on the millions of webpages running the AdSense program.
Contextual advertising has attracted some controversy through the use of techniques such as third-party hyperlinking In computing, a hyperlink is a reference in a document to an external piece of information. The most common usage is in the Internet to browse through web pages: some text in the current document is highlighted so that when clicked, the browser automatically displays another page or changes the current page to show the referenced content. The, where a third-party installs software onto a user's computer that interacts with the Web browser A web browser is a software application for retrieving, presenting, and traversing information resources on the World Wide Web. An information resource is identified by a Uniform Resource Identifier and may be a web page, image, video, or other piece of content. Hyperlinks present in resources enable users to easily navigate their browsers to.[citation needed] Keywords on a webpage are displayed keywords as hyperlinks that lead to advertisers.
Agency roles
There are several advertising agencies An advertising agency or ad agency is a service business dedicated to creating, planning and handling advertising for its clients. An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and branding strategies and that help brands understand how contextual advertising options affect their advertising plans. There are three main components to online advertising:[citation needed]
- creation — what the advertisement looks like
- media planning — where the advertisements are to be run
- media buying — how the advertisements are paid for
Contextual advertising replaces the media planning component. Instead of humans choosing placement options, that function is replaced with computers facilitating the placement across thousands of websites.
See also
- Editorial-related advertising
- In-text advertising Although contextual advertising in general refers to the inclusion of advertisements adjacent to relevant online context , in-text advertising places hyperlinks directly into the text of the webpage. Most in-text advertising has the following characteristics:
- Semantic targeting
Notes
- ^ "Contextual Marketing Definition". http://www.pcmag.com/encyclopedia_term/0,2542,t=contextual+marketing&i=56351,00.asp. Retrieved on 2008-07-21.
- ^ "Proximic Signs Deals With Yahoo and eBay To Turn Product Listings Into Contextual Ads; Taking on AdSense". http://www.techcrunch.com/2008/01/15/proximic-signs-deals-with-yahoo-and-ebay-to-turn-product-listings-into-contextual-ads-taking-on-adsense/. Retrieved on 2008-01-15.
Further references
- Ferguson, Renee Boucher. "A Battle Is Brewing Over Online Behavioral Advertising". www.eweek.com. http://www.eweek.com/c/a/Enterprise-Applications/A-Battle-Is-Brewing-Over-Online-Behavioral-Advertising-Market/. Retrieved on 2008-10-20.
- Ostrow, Adam. "When Contextual Advertising Goes Horribly Wrong - Mashable". mashable.com. http://mashable.com/2008/06/19/contextual-advertising/. Retrieved on 2008-10-20.
- "FTC Staff Proposes Online Behavioral Advertising Privacy Principles". www.ftc.gov. http://www.ftc.gov/opa/2007/12/principles.shtm. Retrieved on 2008-10-20.
- "Steve Irwin’s Death : Contextual Advertising Gone Bad". www.shmula.com. http://www.shmula.com/194/steve-irwins-death-contextual-advertising-gone-bad. Retrieved on 2008-10-20.
- Kenny, D. and Marshall, J. (November-December 2000). "Contextual Marketing: The Real Business of the Internet". Harvard Business Review. http://hbswk.hbs.edu/archive/2124.html. Retrieved on 2008-07-22.
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