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Information about Contextual Advertising

Internet Marketing
Display advertising
Interactive advertising
Email marketing
Web analytics
Affiliate marketing
Cost Per Action
Revenue sharing
Contextual advertising
Search engine marketing
Search engine optimization
Social media optimization
Pay Per Click advertising
Paid inclusion
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Contextual advertising is the term applied to advertisements appearing on websites or other media, such as content displayed in mobile phones, where the advertisements are selected and served by automated systems based on the content displayed by the user.

Google AdSense was the first major contextual advertising program. It worked by providing webmasters with JavaScript code that, when inserted into web pages, called up relevant advertisements from the Google inventory of advertisers. The relevance was calculated by a separate Google bot that indexed the content of the page.

Since the advent of AdSense, the Yahoo! Publisher Network, Microsoft adCenter and others have been gearing up to make similar offerings.

Contextual advertising has made a major impact on earnings of many websites. As the ads are more targeted they are more likely to get clicked, thus generating revenue for the owner of the website (and the server of the advertisement). A large part of Google's earnings are from their share of the contextual ads served on the millions of webpages running the Adsense program.

Advertising on a Web site that is targeted to the specific individual who is visiting the Web site. A contextual ad system scans the text of a Web site for keywords and returns ads to the Web page based on what the user is viewing, either through ads placed on the page or pop-up ads. For example, if the user is viewing a site about sports, and the site uses contextual advertising, the user might see ads for sports-related companies, such as memorabilia dealers or ticket sellers. Contextual advertising also is used by search engines to display ads on their search results pages based on what word(s) the users has searched for.

Contextual advertising has attracted some controversy through the use of techniques such as third-party hyperlinking, where a third-party installs software onto a user’s computer that interacts with the browser by turning keywords on a Web page into links that lead to advertisers that are not paying the Web site to advertise on its pages. A contextual ad is the advertisement that dynamically appears on a Web site.

Agency Roles

There are many agencies that will help brands understand how contextual advertising options affect their advertising plans. There are three main components to online advertising. Creative (what does the ad look like), media planning (where do the ads run) and media buying (how do you pay for the ads). Contextual Advertising replaces the middle component, media planning. Instead of humans choosing placement options, that function is replaced with computers facilitating the placement across 1,000's of sites.

See also

Internet marketing, also referred to as online marketing or Emarketing, is marketing that uses the Internet. The Internet has brought many unique benefits to marketing including low costs in distributing information and media to a global audience.
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Display advertising is a type of advertising that may, and most frequently does, contain graphic information beyond text such as logos, photographs or other pictures, location maps, and similar items.
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Interactive Advertising is the use of interactive media to promote and/or influence the buying decisions of the consumer in an online and offline environment. Interactive advertising can utilise media such as the Internet, interactive television, mobile devices (WAP and
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Email marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every email sent to a potential or current customer could be considered email marketing.
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Web analytics is the study of the behaviour of website visitors. In a commercial context, web analytics especially refers to the use of data collected from a web site to determine which aspects of the website work towards the business objectives; for example, which landing
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Affiliate marketing is a method of promoting web businesses (merchants/advertisers) in which an affiliate (publisher) is rewarded for every visitor, subscriber, customer, and/or sale provided through his/her efforts.
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Cost Per Action or CPA (as it is often initialized to) is a phrase often used in online advertising and online marketing circles.

CPA is considered the optimal form of buying online advertising from a direct response advertiser's point of view.
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Revenue sharing is the splitting of operating profits and losses between the general partner(s) and limited partners in a limited partnership. More generally, the practice of sharing operating profits with a company's employees, or of sharing the revenues resulting between
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Search Engine Marketing, or SEM, is a form of Internet Marketing that seeks to promote websites by increasing their visibility in the Search Engine result pages (SERPs).
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Search engine optimization (SEO) is the process of improving the volume and quality of traffic to a web site from search engines via "natural" ("organic" or "algorithmic") search results.
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Social media optimization (SMO) is a set of methods for generating publicity through social media, online communities and community websites. Methods of SMO include adding RSS feeds, adding a "Digg This" button, blogging and incorporating third party community
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Pay per click (PPC) is an advertising model used on search engines, advertising networks, and content websites/blogs, where advertisers only pay when a user actually clicks on an ad to visit the advertiser's website.
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Paid inclusion is a search engine marketing product where the search engine company charges fees related to inclusion of websites in their search index. Paid inclusion products are provided by most search engine companies, the most notable exception being Google.
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Advertising is paid, one-way communication through a medium in which the sponsor is identified and the message is controlled by the sponsor. Variations include publicity, public relations, etc..
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Google Inc.

Public (NASDAQ:  GOOG ), (LSE:  GGEA )
Founded Menlo Park, California (September 7 1998[1])
Headquarters Mountain View, California, USA

Key people Eric E.
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AdSense is an ad serving program run by Google. Website owners can enroll in this program to enable text, image and, more recently, video advertisements on their sites. These ads are administered by Google and generate revenue on either a per-click or per-thousand-impressions basis.
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The webmaster (feminine: webmistress), also called the system administrator, the author, or the website administrator, is the person responsible for designing, developing, marketing, or maintaining a website.
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JavaScript
Paradigm: multi-paradigm
Appeared in: 1995
Designed by: Brendan Eich
Developer: Netscape Communications Corporation, Mozilla Foundation
Typing discipline: dynamic, weak, duck
Major implementations: SpiderMonkey, Rhino, KJS, JavaScriptCore
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In communications, a code is a rule for converting a piece of information (for example, a letter, word, or phrase) into another form or representation, not necessarily of the same type.
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Microsoft adCenter (formerly MSN adCenter), is the division of the Microsoft Network (MSN) responsible for MSN's advertising services. Microsoft adCenter currently provides pay per click advertisements.
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AdSense is an ad serving program run by Google. Website owners can enroll in this program to enable text, image and, more recently, video advertisements on their sites. These ads are administered by Google and generate revenue on either a per-click or per-thousand-impressions basis.
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Kanoodle is a privately owned search engine marketing company offering search sponsored links. Kanoodle was founded in 1999 and is now a subsidiary of Seevast, Corp, which offers online marketing and campaign management services.
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IntelliTXT is an advertisement platform developed by Vibrant Media, and is an example of keyword advertising. Website authors insert a script into their pages which calls the IntelliTXT platform when a viewer views the page; this script then finds keywords on the page and double
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