Targeted and contextual advertising are two of the most popular ways to promote a website on the Internet. Despite the fact that both of these tools perform well in a variety of topics, there are fundamental differences between them. Many beginners in the field of Internet marketing often confuse them, because at first glance the principle of their work is similar.
However, in reality, this is not the case. Each of them has its unique features and advantages, which should be taken into account when planning an advertising campaign. In our article you will learn how targeted advertising differs from contextual advertising and for what tasks each tool is suitable.
What is contextual advertising?
Contextual advertising allows you to show your target audience thematic ads, which are selected depending on the content (context) of the web page and the entered search query.
This tool is designed to attract a “hot” and “warm” audience – people who are already ready to buy a certain product, who are interested in it at the moment and are looking for it using search engines. Such ads can be shown in:
In search engine results (Google or Bing). In this case, advertising is shown above or below the organic output and is highlighted with a special marking.
On partner sites that are part of a contextual media network. These can be thematic portals, blogs, forums and other sites where blocks with ads corresponding to the content of the page are placed.
To run such advertising, a specialist selects a semantic core (phrases that are most often entered by users in the search bar), groups individual queries and creates attractive ads for them. After a potential customer enters the desired query in the search, the system shows him an advertisement for your products.
What is targeted advertising?
Targeted advertising, unlike contextual advertising, is not tied to user requests. The main “trick” of this tool is segmentation of the target audience depending on its behavior, preferences, age and other characteristics. Targeting is set up on the basis of this data (hence the name of the tool).
This approach allows you to very accurately identify the audience and show ads to those who are most likely to be interested in the product. For example, when promoting cosmetics, you can set up targeting for women 25-45 years old with a high income, living in a certain city and interested in the topic of beauty and self-care.
The main platforms for placement here are popular social networks – Facebook, Instagram, Telegram, TikTok, LinkedIn, Twitter (aka X). Each of these platforms has a huge database of its users, which allows you to customize targeting with the highest possible accuracy.
The main differences between targeting and contextual advertising
To most effectively use each of the tools, you need to understand the differences between targeting and contextual advertising. Below we will analyze in detail the main ones.
Placements
Contextual advertising is shown in Google or Bing search results. It occupies the first positions above the organic output or is located at the side and bottom of the page. For example, if a person enters the query “buy cement in Kiev” into the search bar, he will see advertising blocks with offers of construction companies and stores offering cement.
Target in turn, is shown directly in major social networks. Such ads can be displayed in the news feed, stories, and also in special blocks on users’ pages. At the same time, different social networks have different audiences, so it is necessary to carefully choose the sites for placement, focusing on the specifics of a particular business.
Principle of display
Context is shown with “binding” to specific queries. It appears only when certain keywords or phrases related to the advertised product or service are entered in the search bar. The characteristics of the audience are not taken into account. The main thing is that the text in the search bar corresponds to the subject of the ad.
In the case of targeting, ads are shown to a strictly defined audience with specified parameters. For example, when promoting sports nutrition, we can set up displays for men aged 18 to 35 who are into fitness and lead a healthy lifestyle. In this case, the advertiser has access to a variety of characteristics:
Advertising format
The variety of contextual ads is very limited, which is dictated by the very essence of this tool (advertising must fit into the format of search engine results). You can use standard text ads in search results, media blocks on partner sites, and small product cards with prices and photos. The small number of available formats is compensated for by the high “temperature” of the client base.
Social networks, on the other hand, offer more varied opportunities for creativity. Such ads are, in fact, a regular post that can include text, images, videos, and interactive elements. They can be placed in newsfeeds, stories, carousels, galleries, banners and other attractive formats.
This variety of formats also helps to increase efficiency. After all, the task of targeting is to attract the attention of a “cold” audience that is not looking for where to buy the offered item, and guide them through the sales funnel until they make a purchase. This is much more difficult than simply pushing a purchase to someone who already knows what they are looking for.
That’s why you need to create bright, eye-catching creatives on social networks that can hook an uninterested user and generate interest in the product. Here you need to use strong visual images, intriguing headlines, and clear calls to action. The more creative and persuasive – the higher the chances of success.
The impact of quality texts in search cannot be underestimated. Even within standard formats, you can create attractive headlines and descriptions that will stand out from the competition.
Audience warmth
Search advertising is mainly focused on working with a “hot” audience. Here is the task of convincing potential customers to choose you among competitors, because they have already made a decision to buy. At first glance it may seem that it is easier and more profitable to work in this way, because it is much easier to sell something to an interested person.
However, there is an incredible number of people who are in principle ready to buy this or that product, but do not know about its existence. And there are many more such users on the Internet than “hot” customers. But if you familiarize them with the benefits and involve them in the sales funnel, they can become your regular customers.
Targeting, on the other hand, is more universal and focused on working with “cold” and “warm” at the same time. Such messages can be shown to people who have not directly searched for your product, but may potentially be interested, as they fit the selected parameters.
With the help of this tool you can promote things that people may not even know about or understand how to formulate a search query correctly. A vivid example is the promotion of a new phone model. Not everyone plans to upgrade their gadget, but seeing an attractive offer in their feed, they may become interested and possibly buy a new device.
With the help of targeting, you can effectively promote everyday goods and services. This includes items of clothing, footwear, cosmetics, food products, sports equipment, toys for children and much more.
But search advertising is more suitable for stimulating one-off purchases in the luxury segment – real estate, cars, furniture, repair work. After all, if people are purposefully looking for this, they are ready to make a quick decision and invest their financial resources.
Of course, in reality, the boundary between “hot” and “cold” CA is not so clear-cut. That’s why both of these tools can be successfully used in almost any environment. But to set up an effective campaign that will bring long-term results, you need to understand the principle of working with each of them.
Portrait of CA
When placing in search, you know quite little about the people who clicked on the link to your resource. There is a generalized portrait based on key phrases and general subject matter, but it does not give a detailed idea of the CA.
The situation is different with targeting. Since it is initially oriented towards certain socio-demographic characteristics and interests, the advertiser receives much more information.
By analyzing statistics on interaction with content, you can draw up a detailed “portrait” of your target audience. This will make it possible to determine who your potential customers are, what they are interested in, what their “pains” and preferences are. Based on this knowledge, you can adjust the targeting settings, build more effective communication and create offers that meet the needs of customers to the maximum extent possible.
Here’s an example. Let’s say a furniture manufacturer has launched a social media campaign for a new model of sofa. Initially, it was supposed to be aimed at middle-aged men. However, after studying analytics, marketers found out that the most active in the segment are women aged 25 to 55 who are interested in interior design.
Having received this information, the company adjusted its approach in the following points:
Photos of the proposed sofa in an attractive interior began to be used.
A post was written with tips and recommendations on how to combine the new furniture model with various interior elements – wallpaper, lighting, decor.
A special emphasis was made on the advantages – a dirt-resistant fabric covering to make the sofa more attractive for families with children.
Thanks to such changes targeting the real target audience, sales increased and the profitability of the campaign doubled. Precision targeting increased conversion rates, while less effective messaging options were turned off.
And here’s the difference between targeted and contextual advertising – it’s much harder to get such detailed data with context in search. It is more focused on one-time interaction – a person goes to an online resource, finds the necessary information and makes an order. But what his preferences are, what exactly drove him to you – these questions often remain unanswered.
Of course, modern web analytics systems allow you to collect certain data. But this information is not as detailed and diverse as in the case of social networks, where people voluntarily share a lot of information about themselves.
The principle of information delivery
For placement in the search engine results, brevity and informativeness are important. The text should clearly and unambiguously answer the buyer’s questions, showing that at this link he will find exactly what he wanted.
At the same time, some modern formats (for example, Google Shopping) allow you to include additional elements – photos, prices and ratings. In some cases, it is even possible to buy a product directly from the output. But the basic principle remains the same – maximum relevance of the answer to the entered search phrase.
To achieve the desired marketing effect are important:
Careful selection of the semantic core.
Relevance of the title and description to keywords.
Accurate and direct answer to the user’s query.
A landing page that fully discloses the answer to the question and contains all the necessary information.
The situation is somewhat different with targeting. Direct appeals to “buy here and now” will cause rejection rather than a desire to buy the product. Here the presentation of information should be softer, but at the same time attractive.
For example, storytelling – a marketing technique that helps to convey a certain message by telling an interesting story to the reader – will work well. Vivid visual images and interactive video content are also favored. The goal is to attract people, evoke emotions and a desire to learn more details.
Of course, a call to action is also necessary here, but it should look more native, as a natural continuation of the process of “warming up”, not as a sharp and intrusive call to buy something. Main tasks:
To visually attract the user with creative images or videos.
Interest a person in the product, show its advantages and benefits.
Motivate to go to the website or social network page to get more information.
Convince the potential buyer that the product or service will be useful and will be a profitable investment.
That’s why bright, creative and catchy creatives, interesting and unusual offerers are important. They should stand out in the flow of information, arouse curiosity and emotions, gradually forming a person’s desire and willingness to make an order.
Cost per click and conversion
Among the key differences between targeted and contextual advertising is the cost per click. In most cases, it is higher for contextual, while at the same time, this format shows a higher conversion rate. This is directly related to the peculiarities of the target audience – they are more interested in interacting with the brand.
This tool works according to the PPC (Pay Per Click) model. That is, the advertiser pays only for real clicks to the site. At the same time, the cost is not fixed. It is influenced by a number of factors:
The level of competition in the niche. The more marketers competing for the same keywords, the higher the price per click. Search engines set the price based on an auction, where the one who is willing to pay more wins.
Product popularity. The higher the demand, the more competitors.
Desired position in the search engine. The higher you want to show up, the more expensive it will cost to go to the site.
Seasonality. In periods of high demand (for example, before the holidays), the cost can rise significantly.
In targeting, on the other hand, we mainly work with “cold” traffic. Consequently, the conversion rate here is usually lower. However, the quality of creatives, the chosen target audience and the right choice of platforms have a great influence on the effectiveness here.
The same creative can show dramatically different conversion rates depending on these conditions. Therefore, before launching a large-scale campaign, it is better to test several variants of creatives on different groups of potential buyers. This will help to determine which approaches and formats work best.
The cost here also depends on many factors – the specifics of the chosen customer base, the specifics of the advertised products, the level of competition in the niche, the rates of other advertisers competing for the attention of users.
For example, a campaign aimed at solvent people from large cities will always cost more than promotion among residents of small towns. Unlike context, several payment models are used here at once – for shows (CPM), for clicks (CPC), for conversions (CPA) and so on.
What to choose between targeting or context?
So, each of the tools has its advantages and disadvantages, but what to choose, targeted or contextual advertising? It all depends on the specifics of a particular business and the marketing objectives set. Let’s get to the bottom of it.
When is it better to choose targeted advertising?
Promoting a new product. If you bring to the market a new product that is not yet on the market, user demand for it has not yet been formed. Social media marketing will help familiarize potential customers with your offer. Even if a person doesn’t buy right away, they will learn about the product and may come back to it later. This will work especially well in the B2C segment.
A narrow target audience that can be described. If you know exactly the portrait of your client – his age, gender, interests, behavior, then targeted advertising will work perfectly. In this case, you can show the offer only to relevant users and not waste your budget.
Promotion of inexpensive products. In social networks, people are prone to spontaneous “emotional” actions. Therefore these platforms are perfect for promoting inexpensive and simple products – clothes, cosmetics, accessories, beauty services.
Niche and unique products. It is easy to promote handmade products, hobby and creative goods, exclusive and rare items on social platforms, because there are many thematic interest groups with relevant content.
Your products are needed all the time. This includes pet food, sports nutrition, cosmetics, stationery and more. If the context is more aimed at a one-time sale, social networks sell well things that need to be replenished from time to time.
Goods of impulsive demand. Saw, fell in love, bought – not an uncommon behavioral pattern of social media users. A beautiful dress, a stylish watch, a delicious dessert – the right targeting will encourage your audience to make a quick purchase.
Your goal is to popularize the brand, not to sell it. Sometimes the main goal is not to sell here and now, but to familiarize the audience with the company and its values. Targeting will help you find “your” people, establish trusting communication with them through useful content, reviews, interesting materials.
You promote local events or services. This can include concerts, conferences, seminars, fitness clubs, coffee shops, beauty salons. Your creatives will be seen exclusively by residents of a specific neighborhood that are within walking distance of your location.
When is context more suitable?
A wide or difficult to describe target audience. If a product is of interest to people of different gender, age and social status, it is easier to find such an audience precisely by the keywords they use when searching. For example, cab or trucking services can be promoted in this way.
The products are well known and have been on the market for a long time. If a potential customer is looking for where to order this or that item, Google Ads is exactly what you need. Here you can collect a list of popular queries and run ads on them.
One-time purchases with high value. For example, cars, real estate, land plots, expensive household appliances. They are usually chosen for a very long time, reading a lot of information, studying forums and watching reviews on YouTube. And they are bought once or once every 5-10 years. And they certainly won’t order them after seeing a creative in a Facebook or Instagram feed.
Work in the B2B sector. In most cases, contextual advertising will work better for attracting corporate clients. This is especially true of highly specialized or complex products which are purchased as a result of tenders. This can include production equipment, software, banking and accounting services, etc.
Also, with the help of ads in search you can test the semantic kernel before SEO-optimization of a web resource as a preparatory stage. This way you can analyze demand, get quick results and adjust semantics.
When is it better to combine contextual and targeted advertising?
There are cases when both tools show themselves in the best way. These include such areas of business as:
Local companies. For businesses that operate strictly in a certain region, attracting additional targeted traffic will definitely benefit. Targeting will increase brand awareness and attract attention, while context will ensure an influx of interested customers.
Online stores with a wide range of products. Search advertising will help to attract customers who are looking for specific products based on commercial queries, while social networks will help to draw attention to new products, promotions or seasonal offers.
Work to popularize a new product. Social media will allow you to introduce your clients to the new product, create demand and increase recognition. And context will help to influence the client at the next stage of the sales funnel. It is important to note that this approach is suitable only for businesses with large marketing budgets, because you will have to wait a long time for a return on investment.
