The technology is becoming increasingly sophisticated and offering a new revenue stream for publishers.
With pressure building up on third-party based audience data, publishers are increasing their reliance on contextual ad targeting. And, even while it is unlikely that ad revenue from contextual will be able to match money made from audience-based targeting, its popularity has been on an upswing.
Major publishers like the New York Times have doubled down on the strategy and have increased investments into contextual. The demand for the service has been high enough for the NYTimes to charge rates at par with audience based-products.
Currently, third-party vendors scrape publisher pages and make buying decisions with no input from the publishers. But, privacy concerns, user content and the death of cookies make it likely that intermediaries will be squeezed out from the equation.
[4 minute read]