How contextual advertising works and its features

Estimated read time 3 min read

Ads are displayed on the necessary pages due to the presence of keywords in the settings. That is why they become relevant in each case. By clicking on a link to the advertiser’s website, the user can see ads that are also related to his or her interests to some extent.

The visitor can stay a while, familiarize himself with the offered products, place an order, or come back later. In any case, the potential client has learned about the site, and its owner has not paid for a click in vain. This means that one of the functions of contextual advertising is to notify users about a new brand (resource, product, etc.), i.e. to expand the potential clientele.

User loyalty, as well as their transition from potential to real customers, also depends on the quality of the landing page of the site to which the buyer lands. If it is easy to view, with a clear product catalog and relevant advertising, it will increase the chances of the visitor performing the targeted action.

Online business owners who have decided to use contextual advertising are primarily interested in its cost. It depends on several factors:

  • the subject of placement (some of the most expensive, for example, are finance, tourism, real estate, construction, etc;)
  • selection of keywords (contextual or non-contextual, high or low frequency);
  • selection of the ad display position (special placement, 1st place, dynamic or guaranteed display);
  • time of ad display (day and night), working days or weekends;
  • setting up geotargeting (regional contextual advertising is usually cheaper);

You should also keep in mind that the cost of contextual advertising is determined on a promotional basis, i.e. in comparison with the prices at which competitors buy clicks. Of course, ads of advertisers who paid a higher CPC will be displayed in higher positions.

At the same time, high-quality ads, even if their CPC is set lower, can occupy a higher position in the SERP. This happens because the systems take into account the ad’s conversion rate (CTR).

Increasing sales and business development is the main goal of launching an advertising campaign. These are the results that are intended to justify all advertising costs. Of course, you should keep in mind that not every website visitor will place an order. After all, not everyone leaves a brick-and-mortar store with a purchase. But if you manage to get them interested, you will know where to look for the right product next time.

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