Topic Name: Contextual Advertising

Name: Nowshin Jahan Oishi

ID: 190202012
Year:2nd year
Semester:1st semester
School of Business
Ahsanullah University of Science and Technology

Date of Submission:17.09.2021

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 Table of Contents
Executive Summary:........................................................................................................................3

Introduction:....................................................................................................................................4

The Advantages of Contextual Advertising:...................................................................................5

The Disadvantages of Contextual Advertising:...............................................................................6

How does contextual Advertising work?.........................................................................................6

Why Contextual Advertising Is So Important To Business Growth?..............................................8

The Future Of Contextual Advertising:...........................................................................................9

Conclusion:......................................................................................................................................9

References:....................................................................................................................................10

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Executive Summary:
Contextual advertising is called as a placements of commercial textual advertisements. It is the
content of a generic web page, while Sponsored Search (SS) advertising consists in placing ads
on result page from a web search engine. It also related with ads driven by the originating query.
The most important thing is contextual advertising is uses an approach, which is called
behavioral targeting to serve relevant advertising. Moreover every time the user performs a
search reads an article or clicks on an ad and a cookie stored on the computer tracks the activity,
which is used to create a behavioral profile of the consumers own marketing purposes. On the
other hand contextual advertising is a web crawler scans every URL of the website and
categorizes contentment. Contextual advertising is a kinds of a big platform, which is a form of
targeted advertising for advertisements appearing on many types of websites and media. It is
also such as subject displayed in mobile browsers and Google . Those advertisements themselves
are selected and served by automated method, which based on identity of the users. In contextual
advertising, ads describe to the content which being observed and learn are placed to assure best
connection with their viewer and user. Contextual advertising also be make video ads. It can be
more though in video.

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Introduction:
Contextual advertising is one of the modern game-changer to modern advertising platform.
Nowadays contextual advertising is becoming popular for new generation that began the
snowballing of what we know online advertising at a present. It refers to the practice of placing
advertisements on web page, which is based on the content of those pages. For example, we see
it could be ads for running shoes on a news article about running. Also it could be ads for mobile
on tech-ecommerce site. At present contextual advertising is very necessary for businesses. To
help make and maintain traction in their own online advertising efforts. It create new ideas and
systems, which always draw higher traction and results, so that businesses can be innovative and
imaginative.

Contextual advertising is a types of an ad which is in direct correlation to the content of the

website which the users or viewers is watching. It is an advertisement that is offering particular
discount price on a flight to America appearing on a website concerning travelling in USA. The
most necessary information about contextual advertising is called “In-Text” advertising or else

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“In-Context” technology. And it is few testy than traditional advertising. That’s why contextual
advertising influences the users much effectively. Contextual advertising has charmed some
discussion through the conduct of use such as second party source. Keywords on a websites are
exhibition as source that guides to a person or company that advertises a product service or
event. Contextual advertising, which is an anomalous alternative for those ads advertisers and
who publish these advertisements.

The Advantages of Contextual Advertising:

Contextual advertising has many advantages. Which helps to improve the content and
advertising quality. Because a good advertisements attract the users most.

1. Promotion of sales: When advertising represent a reason to buy their product and offers a
short-term inspiring to purchase, then sales are increasing and little permanent gain in
market. Promotion of sales also attract them, who are looking primarily for less price and
proper value.
2. Continuation of production: It is a flow of production method which is used to
manufacture, produce and makes the materials without any obstruction. Continuation of
production is called as a continuous method or else continuous flow method and it is
contradict with batch production.
3. Improve goodwill: Improve goodwill on advertisements helps producers and the
companies to know their business competitors and design accordingly to conference or
meet up the level of competition. It also helps to create goodwill for the company and
makings customers attachment after reaching a mature age.
4. Huge profit: Contextual advertising has a good features. It has made great impact on
earnings of websites. A main part of Google’s profits is from its share of the contextual
ads are served on the millions of websites running on the program. Rise sales by saying
dynamic buyers and users about companies product and service.
5. Generates employment: It is the most important feature for contextual advertising. It is a
method of providing new starting jobs and company, especially for those people who
are unemployed or who are looking for job. Generates employment helps to improve the
contextual advertising work and it also eliminates unemployment in our country. The

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 method by which the figure of jobs in an economics enhancement. Employment creates
more assets in our country.

The Disadvantages of Contextual Advertising:

1. Expense of production: Expense of production is the total cost which appropriate by a
company to produce a specific quantity of a product or service. Expense of production on
contextual advertising is huge amount sometimes. It is more risk-full for the advertising
company or websites.
2. Intricate advertising: Intricate advertising means spurious advertising. It is a types of
illegal method consequent to the Federal Trade Commission (FTC). Advertising always
promotes a service or product in a intricate method which is unethical. Because it does
not provide consumers with all information about the product or service which they need
to set a proper decision. Therefore, consumers might waste their money on that useless
products and service which they neither need.
3. Leads to disparate contest: Disparate contest means a competition between companies
which is not equal level. Leads to disparate contest hits the advertisement’s reputation.
Because of disparate contest consumers dose not trust the product or service anymore.
4. Makes a monopolistic market: A monopolistic market refers to the theoretical conditions
which describes a market. There one company may offer products and service to the
consumers. In contextual advertisements, monopolistic market is risky for those
company.
5. Promotes inessential consumption: It creates huge cost which is totally unnecessary for
the company. Because of inessential consumption, company spending huge amount of
money for unnecessary work which is very risk-full.

How does contextual Advertising work?

Contextual advertising entangles the method of contextual selecting through a demand side
platform. Which will be place our ads on websites or webpage that convention our parameters. It
works by setting advertisements on relevant websites planned to target customers. For an
example, a websites which focus on a page whether it’s video and article for selling their product

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or service. It will be exploit the algorithms behind the contextual advertisements accomplishment
to comprise pertinent advertisements appointed to the context of the web page. Contextual
advertising has follow two method. First one is content. Which is the former process. The
advertisements are showing around the primary keyword of the content of a websites. Second on
is topic. It is used by a advertisements publisher who can showing topical ads around the main
topic of the websites. There are some method which helps to do contextual work properly:

1. Selects parameters or else different topic for contextual objects. For example: they are
broad class which campaign would fit, like music, agriculture, fashion etc. Briefly, the
main keywords or different topic which publisher elected must be match with the main
theme of the websites.
2. Google explore the content in each display network webpage to try match our
advertisements with maximum pertinent content. There are many types of option in the
advertisements process to select between broad and the main object specific reach.
3. Our advertisements is settled. Through the aforesaid resolution, the display network will
search a placement that matches our advertisements contextually. Hither, google websites
grant an example of how it works with between keywords and the main topic.
4. The compatible advertisements is distributed. Afterward the ads process was completes
the whole analysis, a perfect and better advertisements is distributed between the viewers
and users.

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Why Contextual Advertising Is So Important To Business Growth?
In our country maximum 5/6 in 100 advertisements per day find more than two or three second
of attention. And to remain any scope of being one of them, brands want to establishment of
advertisements. Which creating the advertising absolutely topical intimate to the customers.
Having our advertisements in the correct and settled place is a business-critical must to set up
relationships between our advertisements and viewers or customers. Every people approximately
80/85 meters a day on the internet. And trawling through many types of content and social
media.

Contextual advertising is very important for businesses and companies to help set up and sustain
traction in their online advertising effort. Contextual advertising gives many types of new ideas
and systems always draw higher traction and results. So that businesses and companies can be
innovative and also be imaginative in their approach. They are more likely to search best results
following of an primary launch. Contextual advertising increment purchases significantly. Since
they are efficient for specific types of content. It also attach to the value of the content.
Contextual advertising are very important because it does not figure on any kind of cookies. In
lieu of, these targeting builds use of keywords and key-phrases on a web page or web site. Those
are completely expelling dependability on user data. Contextual advertising has many types of
benefits. For example, be consumed, objective trade, improve the customers experience and to
satisfaction, rise customers or users engagement, non-distracting.

Google Ad-Sense which is the first and best platform for the contextual advertisements. For
example, if a user visit a food news websites then they must see the advertisements related to
foods selling offers. Likewise, when the websites user visit a mobile phone or electronic devices
websites then they must see the advertisements which related to the store which selling electronic
devices. This is the best way to see how contextual advertising method analyzes the content on
the websites. It is also helps in boosting websites huge amount of profit or revenue for many
companies or ads publishers. So we see the importance of contextual advertising is huge. Which
helps in many ways.

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The Future Of Contextual Advertising:
Contextual advertising will suffice to exhibit and alternative as the world moves on. It is growth
of ground from other kinds of viewer targeting. This report is based on a survey leaded by Youth
Trend. It’s found that almost half of all USA businesses rely on contextual targeting systems.
Contextual advertising will have to become more personalized. Even it become more user-
friendly. It is more impatient and unforgiving viewers. Next new upcoming companies or
industries ,pivoting compromise a more demanding client base who will be on the agenda for the
next four or five years.

In 2021, we all are expect the companies to take a more important role in social media curation.
There is going to be an enforced revolution with generating a three dimensional image which
appears to surround the users experiences beginning to define the future of brands with
customers craving meaningful interaction in highly pertinent contextual ads. It is very necessary
to work nearly with content creators and social media owners to drive innovation in commercial
results.

Conclusion:
When we discuss about contextual advertisements, we all discuss about the marketing strategy
that is only based on the environment that a customer is in. Contextual advertising take the
control in the hands of the counselor and advertisements publisher instead of the user or viewer.
It also allowing the user to the point of convergence on the present behave and focus what they
have done in their past. The main thing is contextual advertising is become more beneficial or
profitable. It also be frugal which giving good value ,product and service in a relation to the
amount of money, time, or effort spent. Compassionate various process of digital advertising
which help to become a fruitful publisher. Though publishers must attempt various distribution
and techniques of advertisements monetization of discover out which works good for them.
Advertisers obscure the contextual advertising as like they have been devoted users based
targeting. Being a advertisements publisher, in case users take in steps dynamically and move
quickly to contextual advertising. After that publishers and users will be capable to capitalized.
Contextual advertising is far-away from economical environment. It also can be suitable for the
small business or new starting companies. At the end of the report about contextual advertising,

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we see that importance and benefits of contextual advertising is a lot. It is the most effective side
in every companies, business and also be every customers, internet users and viewers. Because
of contextual advertising every person finds every necessary information about many different
types of product and service.

References:
1. https://www.investopedia.com/terms/j/jit.asp
2. https://en.wikipedia.org/wiki/Contextual_advertising
3. https://instapage.com/blog/contextual-advertising
4. https://www.forbes.com/sites/forbesagencycouncil/2021/07/22/the-new-rise-of-
contextual-advertising/?sh=19acd0185e5d
5. https://www.adpushup.com/blog/what-is-contextual-advertising-how-does-it-work/
6. https://www.tandfonline.com/doi/abs/10.2501/IJA-33-2-3
7. https://www.publift.com/blog/contextual-advertising-everything-you-need-to-know
8. https://problogger.com/the-good-bad-and-ugly-of-contextual-advertising/
9. https://www.knorex.com/blog/articles/what-is-contextual-advertising
10. https://www.researchgate.net/
11. https://www.definitions.net/definition/employment-generation#:~:text=employment
12. https://adage.com/article/gumgum/contextual-advertising/315390
13. https://www.exchangewire.com/blog/2021/02/22/whats-old-is-new-again-the-return-
of-contextual-targeting/
14. https://silverpush.medium.com/how-in-video-contextual-advertising
15. https://www.wordstream.com/contextual-advertising
16. https://integralads.com/uk/insider/power-of-contextual-ads/
17. https://www.searchenginejournal.com/10-facts-and-trends-about-contextual-
advertising/24098/
18. https://headerbidding.co/contextual-advertising-publishers/
19. https://www.iab.com/wp-
content/uploads/2015/10/GumGum_Contextual_Whitepaper_Spreads.pdf
20. https://sendpulse.com/support/glossary/contextual-advertising

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