Navigate the evolution of digital marketing

Introduction

Since the General Data Protection Regulation (GDPR) came into effect in 2016, the digital marketing industry has undergone a significant shift towards a more privacy-friendly environment. Measures like Apple's Intelligent Tracking Prevention (ITP) 1.1 in the same year and Firefox's Enhanced Tracking Protection (ETP) in 2018 marked important milestones in reshaping online advertising dynamics. This development led to the disappearance of cookies, making 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 follow internet users across different websites over time. This change posed a challenge for media buyers who could no longer precisely target all internet users, as ten seemingly different users could actually be the same person.

Changing Landscape in Scandinavia

In 2021, a study by Kobler showed that less than 50% of Scandinavian internet traffic consisted of addressable users for audience-based targeting. Safari and Firefox users, in particular, became unidentifiable, complicating matters further for advertisers seeking to reach specific audiences.

Rise of Transparency & Consent Framework (TCF 2.2)

In January 2024, the advertising industry witnessed a crucial development when Transparency & Consent Framework (TCF) 2.2 came into effect. Publishers were required to implement consent boxes allowing users to easily reject or accept all forms of data usage. When users choose to reject all data usage, tech providers using personal data cannot receive ad requests.

Impact on Ad Inventory

Early observations after the implementation of TCF 2.2 revealed a notable increase in non-consent (reject-all) ad inventories, rising from 15% to 30%. This means an additional 30% of users are now unreachable for audience-targeted or cookie-based measurements, limiting the ability to measure frequency or reach. Combined with tracking protection from Safari and Firefox, less than 30% of internet users are addressable.

Embracing Contextual Marketing

Despite initially seeming restrictive for digital marketing campaigns, the industry is finding innovative ways to adapt. Contextual marketing emerges as a viable solution, allowing marketers to target across multiple sites and reach users who reject everything in the consent box. Contextual end-to-end platforms like Kobler operate without relying on third-party data or cookies to buy and place ads. Instead, they use article content to target ads, which proves more effective for advertisers, publishers, and internet users alike.

Benefits of Contextual Advertising

Contextual marketing has shown positive results, as evidenced by a comprehensive study conducted by YouGov on behalf of Kobler and endorsed by the World Federation of Advertisers (WFA)*. The findings show a 15% increase in brand recall, a similar rise in purchase intent, and a 15% boost in advertiser credibility. Additionally, contextual ads enhance the overall user experience and increase user liking by 118%, creating a win-win situation for both publishers and internet users. The relevance of the ad to the content significantly affects its effectiveness, which can be up to 6 times more effective when the ad and article align.

Conclusion

In 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 realize that adapting to user preferences and content relevance is not only a response to regulatory challenges but a way to greatly enhance advertising effectiveness and user satisfaction.

Contextual advertising is a versatile tool that can be strategically used in various ways:

1. Reach: Extend your reach to audiences behind paywalls, Safari and Firefox users, and internet users without consent.

2. Category Entry Point: Place your ads to be relevant to new categories, boosting your brand's presence and relevance.

3. Borrow Authority: Boost your brand's credibility by placing ads in contexts aligned with authoritative sources and leveraging the credibility of surrounding content.

4. Consideration Phase: Target people in the consideration phase of their decision journey and influence their purchasing decisions with tailored advertising.

As contextual advertising continues to prove its effectiveness in various strategies, contact us if you have any questions or want further 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 strategy.

This article was co-written with:
Philip Örtengren – Sales Manager, Kobler

Remotion is a partner of Kobler