While contextual targeting is a relatively new word, the methodology is not. There has always been some type of contextual ad placement as long as there has been advertising.
For many advertisers in the UK, tracking cookies and data profiling have been the favored strategy for some years.
These tactics, however, target a consumer based on who they are or what they have done. This might result in ineffective ad placement and ad waste. Contextual advertising, on the other hand, targets a specific site or page and only reaches users while they are reading or viewing that material.
Most significantly, privacy rules such as the EU’s GDPR (Global Data Protection Regulation) and the CCPA are in effect.
These key pieces of legislation have been put in place to make cookie-based surveillance of internet users more difficult and, eventually, to put a stop to audience-based targeting.
Brands are more than prepared to abandon tracking consumers’ activity in order to focus on ad placement in the digital environment and the content they are reading.
According to studies, around 81% of UK consumers prefer to watch online advertising that is relevant to the content they are reading. Furthermore, 72% of customers value contextual relevance.
Statistics on Contextual Advertising on YouTube in the United Kingdom
- In the United Kingdom, 32% of marketers employ contextual marketing, while 36% employ demographic targeting.
- According to Forrester, 56% of UK customers believe that how a firm utilizes personal data has a direct influence on purchase decisions.
- The majority of UK consumers (81%) prefer internet advertisements that are relevant to the content they are seeing. Furthermore, 72% of customers believe that contextual relevance is vital.
- According to nearly three-quarters (70%) of UK consumers, ads are more likely to be recalled when they appear next to relevant information.
- The surrounding content influences customer impression of an online ad and the brand linked with it, with seven out of ten British consumers (70%) agreeing.
- When companies provide contextually appropriate adverts, almost two-thirds (65%) of British customers have a more positive impression of those brands.
Facts You Should Know About the UK Advertising Market
1. Consumer Purchasing Power in the United Kingdom
The United Kingdom has a high GDP per capita (about $40,000), which allows businesses to offer products and services with big profit margins. This indicates that the individuals there have more spending power and a better likelihood of converting clicks into conversions.
2. Video Advertising in the United Kingdom
In the UK, about £5.5 billion is spent on video advertising, making this medium a gold mine for firms to broadcast their ads.
YouTube use in the United Kingdom
Advertising on YouTube in the United Kingdom has the ability to reach a large number of people. The United Kingdom ranks third in the world for the number of views and subscriptions received only through YouTube.
Not to mention the state of YouTube Premium in the UK, where 97% of Britishers visit YouTube but just 1% subscribe to YT Premium. This demonstrates that the majority of UK audiences are still seeing advertising on YouTube.
This opens up a whole new universe of possibilities for marketers who choose to position their advertising on YouTube videos and reach people at the optimal time for engagement.
More than 75% of people in every income category watch YouTube, and the chance increases with pay grade.
Whether marketers want to promote necessary or luxury things, YouTube is a wonderful venue for them. Almost no one in the UK does not use YouTube at least once a month.
A poll done in the third quarter of 2020 found that 46 percent of respondents watched YouTube on a daily basis.
How Does YouTube Advertising Work?
Users can view an advertisement on YouTube before/during the video, in the search results, at the bottom of the video, or as a pop-up.
YouTube allows marketers to put advertisements based on demographics, preferences, the content of the ad, relevant keywords, or specific sites.
YouTube’s targeting approach comprises audience targeting, category, keyword, and so on. However, when embedding advertising in videos, all of these systems examine the content but not the context.
The three primary YT targeting tactics are as follows:
1. Affinity/Audience Targeting
Reaching people who already have a strong interest in related topics increases brand exposure and generates consideration for your video advertising.
However, advertising is distributed using this targeting strategy based on previous searches and keyword mapping, which is the primary reason for random ad placement.
It also relies on user data to place advertising, which is a major worry following the prohibition on third-party cookies.
2. Targeting by category
With category targeting, brands may access a wide range of videos, channels, and websites connected to the targeted themes.
However, each of these categories comprises a plethora of targetable subcategories that cannot be removed as needed.
3. Keyword research
Brands can display advertising based on terms or phrases (keywords) connected to a YouTube video, YouTube channel, or kind of website that their audience is interested in, depending on the video ad format.