According to a study produced by IAB Brazil in partnership with Kantar Ibope Media, the national market invested R$ 16.4 billion in digital advertising in the first six months of 2024 alone. Within this market movement, it is possible to identify the main strategies of the sector today and predict possible trends that should arrive in force in the second half of the year and the beginning of 2025. This is the case with contextual advertising.
According to Bruno Almeida, CEO of US Media, a leading media solutions hub in Latin America, this approach will transform the future of the segment. “With Google moving towards blocking third-party tracking cookies in Chrome, companies need to find ways to continue offering relevant ads without access to data collected on websites outside their domain. Contextual advertising is the main one, as it opens up space for new formats and possibilities,” he says.
How does contextual advertising work?
Cookies are personal information collected during website visits and shared with other companies, enabling personalized advertising. However, in the last four years, the discussion about blocking this data has intensified due to the risks it poses to user privacy and the increasing regulations surrounding the topic, leading many companies to abandon this approach.
On the other hand, with advances in Artificial Intelligence (AI), contextual advertising has become increasingly effective. Through this technology, the solution analyzes not only the textual content of the page the user is visiting, but also contextual factors such as geographic location and weather conditions. This allows for the creation of solid and anonymous profiles to be used in displaying relevant ads, as it predicts intentions and behaviors with high accuracy.
According to Almeida, this structure benefits everyone involved. “From the advertisers' side, it's a way to increase click-through and conversion rates, while respecting regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). From the consumer's side, trust in brands that respect their privacy is strengthened, and their experience is improved by receiving less intrusive ads that are more aligned with their interests,” he explains.
Potential applications of contextual advertising in the market:Currently, many companies already show great potential for applying contextual advertising in their business strategies. The CEO of US Media cites Tinder, a location-based dating platform, and Fandom, a fan community that offers articles, guides, and forums about movies, series, and games, as examples.
In the first case, the executive points out that the app could collect data on users' profile preferences to display targeted content. "For example, if a person shows interest in outdoor activities or mentions sports in their bio, they may receive ads for sportswear, camping equipment, or fitness events," he notes.
Regarding Fandom, Almeida suggests incorporating native ads as an alternative, which integrate seamlessly with the platform's design and content. "We're talking about sponsored articles that discuss behind-the-scenes aspects of a film or exclusive interviews with actors, while simultaneously promoting ticket purchases or streaming service subscriptions," he concludes.
