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In this week's edition of eTips, Danny Wirken, of theinternetone.net, will
teach you about contextual advertising.
I hope you'll enjoy the publication.
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 Introduction
to Contextual Advertising
By
Danny Wirken
Recently, advertisers have come to realize the large potential of the Internet
as a media when it comes to advertisements. Advertisers are especially interested
in using contextual advertising since it delivers targeted ads to a more
receptive target audience.
Contextual advertising is a type of online advertising used mostly for
content-based websites. With contextual advertising a program or system
automatically scans a webpage’s content for specific keywords or search
strings and based on the results then returns targeted ads based on the
page’s content.
Types of Contextual Advertising
There are three types of contextual advertising: the pop-up or pop-under
ads, in-text contextual advertising, and inline contextual advertising. Many
are familiar with pop-up ads because they have been around for quite sometime.
Gator actually uses this kind of contextual advertising wherein a window
with relevant a relevant ad for some product or service pops up while a user
is reading a webpage. Pop-up ads are however considered to be not that effective
for advertising since most users find them very irritating and so make use
of pop-up blockers to disable the ads. The ads therefore don’t get seen
by people and in cases where they get through pop-up blockers they are usually
simply closed without really being noticed. In-text contextual advertising,
offered by companies like VibrantMedia, is considered to be less irritating.
They are ads that appear as special hyperlinks linking to actual contextual
ads and are found throughout the entire article being read. They are not
ostentatious at all since they are completely user activated and leaves to
the users the choice of whether to click on the links to view the entire
ads or not. The third kind of contextual advertising is called inline
advertising. This type of advertising is the one used by Google’s AdSense
and Overture’s ContentMatch. With inline advertising targeted ads are
placed on the right side of the page under the label “Sponsored
Links”. This type of advertising isn’t intrusive and webpage owners
get paid on a per click basis. Advertisers who want to be top of the list
need only to pay at a higher per click rate to be on top.
Contextual Advertising in its Early Days
Although it was only recently made popular by Google’s AdSense, contextual
advertising has been around for a longer time. It has actually been around
since 2001 when eZula released its TopText product. Gator also had a king
of contextual advertising going on for a long time. Publishers and other
website owners, however, were not happy with eZula and Gator’s model
for contextual advertising since eZula and Gator reaped the profits without
the publishers earning anything from the ads. The release of Google AdSense,
however, changed all that when they offered webpage owners a percentage of
what the advertiser’s paid them. Advertisers on the other were happy
as well since they only had to pay Google depending on the number of clicks
made on their ads. This is very beneficial for advertisers since they only
have to pay for the actual traffic routed to their site by the advertisements.
Sponsor Message
Another issue surrounding contextual
advertising that sparked the ire of web surfers this time is the software
that came with the contextual ads. The software used to be able to search
for specific search strings were actually installed locally on the surfers'
computers without their consent or even their knowledge. Such software, called
spyware, not only violated the surfers’ sense of privacy but caused
their computers to behave erratically as well or at least slowed down the
computers’ performance since the programs ran on the background without
the surfers’ knowledge.
Although there were contextual advertisers that drew the ire of both publishers
and surfers alike there were also some like Industry Brains, http://About.com,
and Applied Semantics who had their own models of contextual ads, which were
viable and sparked no controversy. They have actually been around for sometime
now and their model seems to be working for them. Google, although relatively
new compared to these companies who deal with contextual advertising, actually
gained popularity faster and was able to spread the concept of contextual
advertising to the world due to its stature as the number one search engine
in web search at the moment. Because of Google’s AdSense contextual
advertising boomed and more and more people are getting into it and are reaping
the benefits.
Who Can Benefit from Contextual Advertising
As mentioned earlier, publishers and web page owners who were once unhappy
with eZula’s model for contextual advertising became more receptive
towards contextual advertising when Google’s AdSense came out.
Google’s Adsense, Overture’s Content Match, and other second tier
search engines like FindWhat and Kanoodle offer pay per click contextual
advertising that benefit both webpage owners and advertisers alike.
Contextual advertising is very beneficial for all kinds of content-based
sites like news and publisher sites as well as sites of small businesses
and even personal blogs. However, for your website to maximize your profit
from the contextual ads on your site, your site’s content should be
of good quality, meaning that it should be rich, relevant, and updated on
a regular basis. A site with poor content and that uses contextual ads would
most likely point its target audience to another site that is of better quality.
If this happens then your visitors will most likely return to your
competitor’s site rather than your own site causing you to lose profit.
News sites and publishers would most probably have no problem in delivering
relevant and updated content, but this can be a challenge to small businesses
and personal websites. The use of content management systems (CMS) could
help such cases, but even with a good CMS extra effort is required to ensure
that the content is of good quality.
A good way you to increase the can of earning money from contextual advertising
is by having a search engine in your site. Google’s Adsense and Overture
both list contextual ads on their search results page. With a search engine
in your site the chance of visitors clicking on an ad will increase and so
will your profit.
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