Maximizing ROI with Contextual Targeting on Mobile
Imagine a user playing a mobile game that involves cooking, how likely do you think they will react to an ad for cooking utensils or even food in general?
Now imagine a user playing a racing game, how likely are they to find interest In car accessories or automotive services, or even exploring the option to a new car they wanted for so long?
And lastly, let's say you are playing an app that simulates building and managing a virtual city…
Will you find interest in home improvement services or furniture?
Our experience at Prado demonstrates exactly this.
In-app mobile advertising has become an increasingly popular way for businesses to reach consumers where they spend most of their time: on their mobile devices.
However, with so many apps available and users constantly switching between them, it can be difficult for advertisers to reach their target audience effectively.
That's where contextual targeting comes in.
Contextual targeting within mobile apps refers to the practice of displaying ads that are relevant to the user's current activity, right within the app. For example, if a player is engaged in a mobile game that involves a specific theme or subject matter (ie. a beauty make-over game), by targeting users based on their current activity, advertisers (i.e. a make-up brand) can increase the likelihood that they will engage with the ad and take the desired action (i.e. check out the latest product line for that brand).
Contextual Advertising is on the Rise
Contextual advertising is establishing itself as the brand-safe and most effective alternative to behavioral advertising. Companies are shifting their marketing dollars towards building a powerful contextual strategy. Based on Statista contextual marketing will grow to nearly $300 billion USD by 2025 as more and more marketers claim they are expanding their contextual targeting portion over time.
Why is contextual targeting within mobile apps superior to other types of advertising?
Firstly, it allows advertisers to reach users when they are most engaged with the app.
When a user is actively using an app, they are more likely to be receptive to ads that are related to what they're doing. This can increase the chances that they will engage with the ad and take the desired action, thus avoiding wasting money on ads that are not being seen by the right people. This can result in a higher ROI and a better overall marketing performance.
But there is also the privacy concern that makes contextual targeting highly attractive.
It is the least invasive form of advertising. No user will debate what exactly do you know about them, when the ad is contextually relevant to the app theme. Contextual targeting can assist in establishing trust with the user, while avoiding the handling or mishandling of sensitive data that could potentially endanger your brand.
- Prado would love to help you maximize your ROI. Get in touch today to get started!
