Contextually-Relevant Ads See Higher Conversion: Research
Advertisers need to meet consumers where they are, using advanced contextual advertising that aligns with the content people are viewing.
Topics
Nearly two-thirds of Australians or around 62% have said they would pay more attention to contextually relevant ads compared to other alternatives, signaling a clear message to marketers: contextually relevant ads, delivered alongside the content viewers are consuming, are preferred. This is according to the latest data from contextual-first advertising company GumGum.
The report also highlights that trust in contextually relevant ads was considerably higher, with 70% of non-neutrals saying they put more faith in the former than the latter.
It further outlines that consumers have a negative impression of traditional tracking-based ads, with 69% describing it as either “invasive” or “unsettling.”
Matt Coote, Country Manager for Australia at GumGum, said, “This discomfort reflects consumers’ heightened awareness of privacy issues, as people now expect brands to prioritise data protection and respect people’s boundaries. Advertisers need to meet consumers where they are, using advanced contextual advertising that aligns with the content people are viewing rather than relying on personal data. It’s about creating a respectful and relevant experience that builds trust.”
Moreover, the data also demonstrated the need for advertisers to avoid awkward situations with their target audiences, as doing so can risk losing customers entirely. When asked how they felt about ads that seem overly personal — such as those reflecting recent shopping habits or browsing history — more than three-quarters (78%) of respondents viewed these ads negatively.
Additionally, 61% found ads targeting personal relationships or health topics to be off-putting, with 41% considering the ads a violation of privacy.
“The repercussions for brands are substantial. If an ad feels too intrusive, nearly two-thirds of Australians say they’d be likely to reduce or even stop using that brand’s services. This shows just how important it is for advertisers to strike the right balance—effective targeting must go hand-in-hand with a strong respect for consumers’ privacy,” added Coote.
Meanwhile, Niall Hogan, General Manager for JAPAC at GumGum, commented, “Overall, these findings clearly reveal that contextual advertising resonates more effectively with Aussie consumers. Marketers absolutely have to build trust by delivering ads that are relevant and impactful without compromising privacy. By prioritising trust and creativity, brands can forge stronger, more meaningful connections with their audiences without crossing the line into invasiveness.”
