Contextual advertising is a type of marketing that uses keywords to find an audience that is looking for the product or service you offer. It allows businesses to focus on people who are likely to be interested in what they have to offer, which can lead to more sales and less wasted money. In this blog post, we will discuss how contextual advertising works and why it's such a successful strategy for many different types of companies.
1. What is contextual advertising and how does it work?
First, let's look at how this strategy works. When you add keywords to your website and online ad campaigns, it will automatically appear when people search for those specific words or phrases on Google or another search engine. For example, if someone is looking for a product or service that you offer they can see an advertisement from your business in the sidebar of their results page.
2. How to use contextual advertising for your business
Second, your business can use contextual advertising for any website or social media account. Once you have the proper keywords added to your site and ad campaigns, it's time to start tracking how many people are seeing them. This way you know which words are working so that you can optimize around those phrases instead of wasting money on ones that aren't as popular with potential customers.
There are several types of ads available through Google Adwords including display advertisements, text-only ads, local search results, shopping ads (for ecommerce), YouTube video ads and more! You should always work closely with an experienced digital marketing company when trying this strategy out for yourself because there is a lot at stake.
Examples: Ulta Salon Cosmetics & Fragrance, Adidas, Tiffany & Co.
3. Why this strategy works so well
First, the benefits of contextual advertising are that it reaches a specific audience and focuses on people who have already shown interest in your products or services. This helps avoid wasting money by targeting ads to those most likely to make a purchase from you instead of reaching wide audiences where there is less certainty about whether someone will buy something or not.
For example, if you sell shoes online then you could add keywords like "shoes," "buy shoes" and other related phrases so when customers search for these words they see an ad from your business in their results page in the sidebar.
Second, it's important to remember that Google Adwords is a bidding system for placing advertisements on Google search result pages based on how much businesses are willing to pay per click. This means that there will always be companies using this technique who have more money at their disposal than yours do and therefore may get higher placement in results pages when people search for keywords related to your business or products/services offered. If someone sees another company's ad before yours then there is less chance of making a sale from contextual advertising since they already found someone else online and not your business.
4. The benefits of using this strategy
The benefits of using this strategy include reaching a specific audience and focusing on people who have already shown interest in your products or services, avoiding wasted money by targeting ads to those most likely to make a purchase from you instead of reaching wide audiences where there is less certainty about whether someone will buy something or not, the ability to track how many times potential customers are seeing these advertisements so that you can optimize around more successful keywords based on performance data over time.
5. The drawbacks to using this strategy
The drawbacks to using this strategy include having no control over which websites show your advertisements since Google Adwords automatically places them based on what potential customers are searching for, the risk of paying more per click than competitors with deeper pockets who may be willing to pay higher bids and therefore get placed in front of you when someone searches for keywords related to the products/services offered by your business or other undesirable results that may occur.
For example, if a company's ads were being picked up because they have "cheap" shoes instead of ones from brands like Adidas then there is less chance of making sales at all since people looking for cheap shoes will not likely buy expensive shoes even though both companies sell athletic footwear. Another drawback includes increased competition among businesses trying to get their advertisements to show up in the top results for keywords related to what they are offering which can lead to increased costs.
6. Examples of businesses that have used this successfully in the past
For example, in 2016 Adidas was the highest ranked advertiser on Google Adwords for keywords like "running shoes" and "tennis shoes." This means that when people search for these words they are more likely to see an ad from Adidas than someone else.
Another example is that in 2014 Expedia was the top advertiser for keywords related to "Hawaii vacations" and other holiday-related terms which means they had a higher chance of appearing when people were searching for these words.
In conclusion, Google Adwords allows businesses to advertise their products or services by targeting specific audiences who have already shown interest in what your business provides so you avoid wasting money on advertisements where there's less certainty about whether someone will buy something from you because they've been seeing others' ads before yours. The drawbacks include having no control over which websites show your advertisements since Google places them automatically based on potential customers' search queries and increased competition among companies trying to get their adverts into top results for relevant keywords. By tracking how many times potential customers see your advertisements, you can optimize around more successful keywords and increase likelihood of making sales.