The Growing Importance of Contextual Ads in TV’s New Era

The opportunities for advertisers to effectively reach their target audiences on CTV and streaming platforms is growing. As CTV offers increasingly sophisticated and programmatic methods to target viewers, advertisers might wonder how best to navigate the tools at their disposal. Contextual and audience targeting are becoming increasingly popular strategies. While Yahoo has discussed ways to capitalize on viewership data in the past, Peer39 — a global provider of contextual, suitability, and quality solutions for modern marketers — has been at the forefront of both contextual and CTV. We can provide a unique perspective into the specifics and benefits of contextual targeting in CTV.

What is Contextual Targeting?
‍Contextual targeting involves placing ads based on the content rather than on the viewer's previous behavior. For instance, an ad for baking supplies can run during a cooking show, or an advertisement for running shoes may be served on a sports network. 

Contextual categorization extends to content ratings, content types, safety & suitability, and channel genres, in addition to movie and show genres. 

The key advantages of contextual targeting are its simplicity, efficiency, and compliance with privacy standards - it does not rely on Personally Identifiable Information (PII) or IDs.

Why Contextual for CTV?
‍Contextual on the web is a time-tested and proven strategy. The strategy carries over to CTV because it allows buyers to confidently target by content type–such as Arts & Culture, Automotive, Cartoon, or Documentary—or on a Verified valid channel such as ABC, BBC, CNN, and other networks. This is especially critical as the number of channels and titles explodes on streaming platforms. According to Nielsen, in 2023, there were 2.3 million distinct video titles across streaming services—an increase of over 600,000 in just two years.¹

It's not just for targeting; contextual information gives advertisers the ability to exclude unwanted content types for maximizing impact towards intended audiences, improve brand safety and suitability, and gain clarity into the viewing environments. To take that running shoe example further, an advertiser could run on a sports network and exclude Poker, Polo, and Wrestling content. 

Additionally, contextual categories can improve efficiency through lower CPMs or layering into other deals to reduce waste. 

Advertisers have also seen issues caused by inconsistency of self-declared content labeling; as much as 8%² of CTV content is actually mobile, games, wallpapers, or screensavers. Industry solutions exist to help mitigate these types of issues. For example, Peer39 CTV Suitability categories enable you to run in content that is safe–and steer clear of the kinds you want to avoid. 

Use Cases for Contextual:

• Reach target audiences at scale: Find the right viewers and put your message in front of them with ease and transparency.
• Efficiency: Implementing deals across platforms is time-consuming to plan and activate, plus optimize. Contextual targeting can be implemented as a pre-bid segment that applies across all inventory. 
• Safety and Suitability: Avoid content that might be at odds with the brand.
• Transparency: No black boxes or hidden content, contextual targeting maps to the categories of content that you choose.

Looking toward the contextual future
As CTV continues to evolve, the importance of contextual targeting is increasingly clear. Advertisers who take advantage of this strategy can navigate the complex CTV landscape with greater confidence, ensuring ads reach the right audience in the right context. Peer39's expertise in contextual categorization and suitability empowers advertisers to maximize their reach while maintaining brand safety. By leveraging these tools, advertisers can reduce waste, improve efficiency, and ultimately achieve better results. As the demand for high-quality CTV inventory grows, contextual targeting will be a vital strategy for success in this dynamic space.

About Peer39
‍Peer39 is the leading global provider of contextual suitability and quality solutions for modern marketers. The company’s AI-powered semantic analysis engine is used by thousands of brands, agencies, and publishers to better understand content across web, CTV, in-app mobile, and online video ad placements. Peer39’s targeting, measurement, analytics, and suitability & safety tools are all informed by privacy-compliant, cookie-free data. This ensures that these solutions will help advertisers now, and well into the future of media. For more information, visit Peer39.com.

Sources:
‍¹Nielsen, State of Play, 2023. Gracenote Global Video Data, July 2021 and June 2023.
²Peer39 data, May 2024

‍