Contextual advertising uses various factors to determine which content is most relevant to users when placing an ad. It targets potential customers by relying on context such as the content of a webpage, location or weather. Machine learning can apply data science to targeting and take these pieces of information to deliver the right ad to the right users. For example, if a user is reading an article about wedding planning, the user might see an ad for wedding dresses on the page.
While advertisers have traditionally practiced behavioral targeting, that is, using a potential customer’s data surrounding their browsing and shopping habits, rising concerns about privacy have led advertisers to find alternative options. Advertisers no longer must rely on cookies or behavioral signals to deliver relevant ads. By using insights surrounding the context of the ad, companies can still create messaging that resonates with audiences.