Semantic targeting, a form of contextual advertising, is gaining in popularity as a privacy-friendly alternative to cookie-based targeting. Further, advancements in artificial intelligence (AI) and machine learning are enhancing the effectiveness and personalization of semantic targeting, driving its increased usage.
So, what is it?
You may recall that semantics relates to the meaning of words and phrases. In its simplest form, it is the study of meaning in language encompassing how words, phrases, and sentences convey meaning and how people interpret those meanings in different contexts.
Semantic targeting in advertising uses AI to understand the meaning of online content (like websites and apps) rather than just surface-level keywords. Semantic targeting goes beyond simple contextual targeting by analyzing semantic relationships between words, phrases, and concepts to determine the most relevant ad placement. This technology and targeting technique enable advertisers to reach audiences in a more accurate and relevant way, based on the actual content being consumed rather than just the presence of certain words.
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Importantly, semantic targeting does not rely on cookies or pixels to function. Instead, it analyzes the content and meaning of web pages contextually and semantically. This approach is considered an alternative to cookie-based behavioral targeting which relies on tracking user data across the web. This approach improves privacy by avoiding the use of personal data, making it a more privacy-friendly alternative to other targeting methods.
Semantic targeting moves beyond simply matching keywords to identify the broader meaning of content. It analyzes the entire context of a webpage or app, including its structure, content and meaning, leveraging machine learning algorithms to understand semantic relationships.
This process allows for more precise ad placement ensuring ads are displayed on pages that are genuinely relevant to the advertiser’s message.
An example might be an ad for electric cars appearing adjacent to a news article discussing rising gasoline prices, even if the article doesn’t explicitly mention “electric cars”. This demonstrates how semantic targeting goes beyond simple keyword matching by understanding the underlying meaning and context of the content. Instead of just matching keywords, it analyzes the content to determine the overall theme and displays ads accordingly.
Semantic targeting is enabled on display platforms including Google Ads and Amazon Ads among other display networks. Search platforms including Google and Microsoft’s Azure Cognitive Search utilize semantic targeting, as well as social media platforms including Meta which uses a form of semantic targeting through their Advantage+ Audience.
You usually don’t have to specifically request semantic targeting; it’s often an integrated feature in contextual targeting platforms. While you might need to enable it or configure it through the platform’s settings, you don’t usually need to send a separate explicit request to activate it.
Semantic targeting proves its effectiveness through increased click-through rates (CTRs) and conversion rates, especially when compared to other forms of targeting like keyword and category targeting. Semantic targeting technology also helps avoid irrelevant ads and ensures ads are displayed on pages that are safe and appropriate for the advertiser’s brand, protecting brand reputation.
InPublishing has reported that they’ve seen CTR increases of up to 5x with certain brands using semantics data. Further, GumGum found that semantic targeting was more efficient than behavioral targeting in terms of cost-per-click, with rates that were 48% lower than those of behavioral targeting.
Semantic targeting in advertising aims to deliver more relevant ads by understanding the meaning and sentiment of website content, rather than just relying on keywords. This approach can lead to higher engagement and potentially better performance by connecting ads with the actual meaning of the content and is considered a more sophisticated form of contextual targeting which uses machine learning to analyze language and context.
To learn more about semantic targeting and how it can help your local business, we encourage you to give us a call at 603-352-5896 or email Advertising@SentinelDigitalSolutions.com.
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