ARTICLE

Navigating the evolution of digital marketing

A shift towards privacy and contextual advertising

Navigating the evolution of digital marketing

A shift towards privacy and contextual advertising

Since the inception of the General Data Protection Regulation (GDPR) in 2016, the digital marketing industry has undergone a transformative journey toward a more privacy-friendly landscape.

ARTICLE

Navigating the evolution of digital marketing

A shift towards privacy and contextual advertising

Since the inception of the General Data Protection Regulation (GDPR) in 2016, the digital marketing industry has undergone a transformative journey toward a more privacy-friendly landscape.

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Introduction

Since the inception of the General Data Protection Regulation (GDPR) in 2016, the digital marketing industry has undergone a transformative journey toward a more privacy-friendly landscape. The implementation of measures such as Apple’s Intelligent Tracking Prevention (ITP) 1.1 in the same year and Firefox’s Enhanced Tracking Protection (ETP) in 2018 marked significant milestones in reshaping the dynamics of online advertising. These developments initiated the decline of cookies, rendering traditional audience targeting strategies less effective.

The cookie challenge

ITP and ETP were designed to prevent cookie tracking, making it increasingly difficult to identify and track internet users across different websites over an extended period. This shift posed a challenge for media buyers who could no longer target the entire internet population with precision, as ten seemingly distinct users might actually be the same individual.
Changing landscape in Scandinavia

By 2021, a study by Kobler revealed that less than 50% of Scandinavian internet traffic comprised addressable users for audience-based targeting. Users on Safari and Firefox, in particular, became unidentifiable, further complicating the landscape for advertisers seeking to reach specific audiences.

The rise of transparency & consent framework (TCF 2.2)

In January 2024, the advertising industry witnessed a crucial development with the enforcement of Transparency & Consent Framework (TCF) 2.2. Publishers were required to implement consent boxes that allowed users to easily reject or accept all forms of data usage. When users opt to reject all, tech providers utilizing personal data are unable to receive advertising requests.

Impact on ad inventory

Early observations post-TCF 2.2 implementation revealed a notable increase in no-consent (reject all) ad inventory, rising from 15% to 30%. This means that an additional 30% of users are now not addressable for audience targeting or cookie-based measurements, limiting the ability to measure frequency or reach. This in combination with tracking prevention from Safari and Firefox less then 30% of internet users are addressable.

Embracing contextual marketing

While these changes may initially seem restrictive for digital marketing campaigns, the industry is finding innovative ways to adapt. Contextual marketing emerges as a viable solution, allowing marketers to conduct cross-site targeting and reach users who reject all in the consent box. Contextual end to end platforms such as Kobler operate without relying on third-party data or cookies to buy and place ads. Instead, they leverage the content of the article to target advertisements, proving to be more effective for advertisers, publishers, and internet users alike.
Benefits of contextual advertising

Contextual marketing has demonstrated positive outcomes, as evidenced by a comprehensive study conducted by YouGov on behalf of Kobler and approved by the World Federation of Advertisers (WFA)*. Results indicate a 15% increase in brand recall, a similar boost in purchase intent, and a 15% increase in credibility for advertisers. Furthermore, contextual ads enhance the overall user experience, garnering a remarkable 118% increase in user liking, creating a win-win situation for both publishers and internet users. Furthermore the level of relevance influences the effectiveness of the advertisement. The impact can increase up to 6X more effective when the ad and the article matches.

Conclusion

In navigating the evolving digital marketing landscape marked by privacy concerns and regulatory changes, the industry’s resilience is evident through the adoption of contextual advertising. Marketers are realizing that aligning with user preferences and content relevance is not just a response to regulatory challenges but a pathway to significantly enhance advertising effectiveness and user satisfaction.

Contextual advertising proves to be a versatile tool that can be strategically employed in various ways:

  1. Reach: Extend your reach to the target audience behind paywalls, Safari and Firefox users, and non-consenting internet users.
  2. Category entry point: Position your advertisements to make them relevant to new categories, expanding your brand’s presence and relevance.
  3. Borrowed authority: Boost the credibility of your brand by placing advertisements in contexts that align with authoritative sources, leveraging the credibility of the surrounding content.
  4. Consideration phase: Target individuals in the consideration phase of their decision-making journey, influencing their purchase decisions through tailored advertising.

 

As contextual advertising continues to prove its efficacy in diverse strategies, we invite you to reach out if you have any questions or if you seek additional insights on maximizing the potential of contextual advertising for your specific needs. Our team is here to assist and provide innovative ideas to optimize your advertising approach.

 

 

This article was co-written together with:
Philip Örtengren (Head of Sales), Kobler

 

 

Remotion is a partner to Kobler

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