Contextual Advertising Definition

Cite this article as:"Contextual Advertising Definition," in The Business Professor, updated March 12, 2019, last accessed July 3, 2020,


Contextual Advertising Definition

Contextual Advertising is an advertisement that is related to the contents and the theme of a website or a part of it and also the searches, interests and needs of the user who enters it. This system utilizes platforms like Google AdSense to get the banners which appear on the portals which use them to achieve a higher rate of return.

A Little More on What is Contextual Advertising

This concept adopts the idea of not employing the use of intrusive advertising and but instead values the interest of the user. This advertising is related to the content that is being viewed and the one arousing the consumer’s curiosity and thus has high efficiency and does not create the feeling of something which is imposed to elicit the attention of the consumer.

The modern audience generally frowns upon everything which has an intrusive character and so this type of advertisement is seen as a mild alternative that works. It is paid for each click obtained since it follows the lines of PPC marketing. The price of each ad depends on the type of website it is located in and the position of the ad within site. For example, an ad placed on the cover of a popular digital press medium will have a higher rate than that set at the bottom of a blog that rarely has any audience.

The contextual adverts are designed to obtain great benefit following the click on ads and a great possibility of getting leads through individuals who enter them. This type of campaign is based on the theme of the location of the ad and the interests of the consumers; thus it appeals to them greatly and is likely to be more interesting.

This advertising is designed to achieve a triple benefit. It benefits the platform where it is placed because it has a higher probability of being clicked by readers. This advertisement helps the advertising company since it attracts more customers. Finally, it benefits the consumers by providing something which may be useful to them.

References for Contextual Advertising

Academic Research for Contextual Advertising

  • A semantic approach to contextual advertising, Broder, A., Fontoura, M., Josifovski, V., & Riedel, L. (2007, July). In Proceedings of the 30th annual international ACM SIGIR conference on Research and development in information retrieval (pp. 559-566). ACM. This paper proposes a system of contextual add matching that is based on a combination of semantic and syntactic features to overcome the problem of irrelevant ads that arises due to the vagaries of phrase extraction and the lack of context.
  • Contextual advertising by combining relevance with click feedback, Chakrabarti, D., Agarwal, D., & Josifovski, V. (2008, April). In Proceedings of the 17th international conference on World Wide Web (pp. 417-426). ACM. This article shows how the match between individual ads and the content of the page where these ads are displayed can be significantly improved through augmenting the ad-page scoring function with additional parameters from a logistic regression model on the words in the pages and ads.
  • Just-in-time contextual advertising, Anagnostopoulos, A., Broder, A. Z., Gabrilovich, E., Josifovski, V., & Riedel, L. (2007, November). In Proceedings of the sixteenth ACM conference on Conference on information and knowledge management(pp. 331-340). ACM. This article proposes the use of text summarization techniques paired with external knowledge to create short page summaries in real time to solve the dilemma either low-relevance, high-latency or high-load.
  • Sentiment-oriented contextual advertising, Fan, T. K., & Chang, C. H. (2010). Knowledge and information systems, 23(3), 321-344. This article explains the mechanism of contextual advertising which refers to the assignment of the relevant ads within the content of a generic web page such as a blog. It proposes the utilization of sentiment detection to improve web-based contextual advertising.
  • A noisy-channel approach to contextual advertising, Murdock, V., Ciaramita, M., & Plachouras, V. (2007, August). In Proceedings of the 1st international workshop on Data mining and audience intelligence for advertising (pp. 21-27). ACM. This paper presents a system that has language independent and knowledge free properties based on the SVM ranking and then evaluates it on a large number of advertisements that appear on real Web pages.
  • Exploitation and exploration in a performance based contextual advertising system, Li, W., Wang, X., Zhang, R., Cui, Y., Mao, J., & Jin, R. (2010, July). In Proceedings of the 16th ACM SIGKDD international conference on Knowledge discovery and data mining (pp. 27-36). ACM.  This article develops two EE strategies for online advertising that can be adaptively balanced through the automatic learning of the optimal tradeoff and the incorporation of confidence metrics of historical performance.
  • Contextual advertising, Zhang, K., & Katona, Z. (2012). Marketing Science, 31(6), 980-994. This paper, examine the strategic aspects of contextual advertising while considering an intermediary with access to a content base, sells advertising space to the advertisers who are competing in the product market and then provides the targeting technology.
  • Semantic associations for contextual advertising., Ciaramita, M., Murdock, V., & Plachouras, V. (2008). Journal of Electronic Commerce Research, 9(1). This paper describes a machine learning approach to contextual advertising while using a set of features which try to capture subtle semantic associations that exist between the vocabularies of the ad and the web page.
  • Blogger-centric contextual advertising, Fan, T. K., & Chang, C. H. (2011). Expert systems with applications, 38(3), 1777-1788. This is an explanation of the concept of Blogger-Centric Contextual Advertising which means the assignment of personal ads to any blog page that is chosen according to a bloggers’ interests.
  • Are contextual advertisements effective? The moderating role of complexity in banner advertising, Yeun Chun, K., Hee Song, J., Hollenbeck, C. R., & Lee, J. H. (2014). International Journal of Advertising, 33(2), 351-371. This study attempts to investigate the effectiveness of contextual ads by examining their effects on brand memory and attitudes towards the advertisement and brand using the theory of priming effect.
  • Pattern based keyword extraction for contextual advertising, Dave, K. S., & Varma, V. (2010, October). In Proceedings of the 19th ACM international conference on Information and knowledge management (pp. 1885-1888). ACM. This paper presents a new candidate selection method to be used in extracting advertising keywords from a webpage. The technique uses Part-of-Speech patterns that restrict the number of potential candidates that a classifier has to handle.

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