However, amidst this growth, concerns about the effectiveness of traditional behavioural targeting methods have come to the forefront.

According to a recent KPMG study, 78% of people worry about the amount of personal data being collected online, prompting stricter regulations and the demise of third-party cookies. Consumer concerns over online privacy continue to mount, and major tech giants like Apple and Google are phasing out third-party cookies. In response to this notable shift, businesses are increasingly turning to contextual advertising as a viable alternative to traditional cookie-based behavioural targeting methods. 

According to Gediminas Rickevicius, VP of Global Partnerships at Oxylabs, advertisers are facing a critical turning point as they navigate the ongoing changes of online privacy and data collection.

Rickevicius states: "In an increasingly ‘cookieless’ world, businesses must explore alternative strategies to reach their target audiences effectively.

“One such strategy gaining traction is contextual advertising, which avoids personal data and instead serves ads based on the content of the media being consumed by users. Unlike behavioural targeting, which relies on extensive user data collection and analysis, contextual advertising offers a more privacy-conscious approach while still delivering personalised experiences.”

Contextual advertising allows advertisers to supply relevant ads to users based on near real-time analysis of the content that they consume rather than relying on past browsing behaviour. This not only addresses privacy concerns but also ensures that ads are more aligned with user interests and preferences.

The shift towards this type of advertising is further fuelled by advancements in web scraping and artificial intelligence (AI) technologies. Through leveraging AI-driven algorithms, advertisers can analyse the context of publicly available online content at scale, allowing for more nuanced and targeted advertising campaigns.

“However, adopting AI-powered contextual advertising is not without its challenges,” continued Rickevicius. “Building and maintaining custom scrapers for each website, as well as ensuring access to high-quality proxies, are key considerations for businesses looking to implement contextual targeting effectively.” 

“As the advertising industry continues to develop, contextual advertising represents a strategic opportunity for businesses to engage with consumers in a more meaningful and respectful way. By harnessing the power of AI-driven technologies and big data, advertisers can stay ahead of the curve and drive meaningful results while also prioritising user privacy.”