How Outcome-Based Marketing and Contextual Advertising Go Hand in Hand
Picture this: your brand’s ad is perfectly aligned with relevant content, captivating your dream customers at just the right moment. This vision is now within reach, thanks to the dynamic duo of outcome-based marketing (OBM) and contextual advertising. These game-changing strategies unite to create highly targeted and measurable ad experiences, propelling your ROI to new heights.
What is Outcome-Based Marketing (OBM)?
Welcome to the world of outcome-based marketing (OBM), where brands pay only when they achieve desired outcomes, including qualified customers, sales, or installs to name a few.
OBM is an umbrella term that encompasses traditional tactics like affiliate marketing, partnership marketing, and performance marketing. This strategy is ideal for brands looking to hone in on an omni-channel approach, but worried about eating up their marketing on testing. With pay for results pricing, companies are able to test out new traffic sources and only spend ad budget when driving qualified customers. This win-win model provides a shield against marketing budget losses and fosters resilience even in challenging economic times. With a 50% higher ROAS than traditional models, OBM puts measurable results and performance-based strategies at center stage, ensuring marketing efforts lead to actual conversions and sales, not just impressions or clicks.
Take charge of your brand’s marketing success and unlock the potential that OBM brings – download The C-Suite’s Guide to Outcome-Based Marketing today.
What is Contextual Advertising?
As concerns about online privacy and intrusive ads rise, contextual advertising has continued to emerge as a favored solution. With a projected market value of $562.1 billion by 2030, it stands tall as a powerful tool for reshaping brand perceptions and fostering genuine connections with users. This strategic approach places ads on pages that align with the audience’s browsing content. By targeting niche keywords, topics, or channels, contextual advertising reaches engaged audiences without relying on cookies or personal data. The ability to connect with the right audience through a personalized message is paramount – 69% of consumers prefer contextually relevant ads.
Through the power of AI and deep learning, contextual advertising captivates highly interested users, making it a compelling solution for marketers seeking effective ad placement.
Contextual Advertising at Play
Now that we have a deeper understanding of contextual advertising, let’s dive into some real-world examples of how this powerful strategy is put into action to deliver highly targeted and effective ad experiences:
- Keyword-Based Ads for Real-Time Relevance:
- When a user searches for the latest smartphone model, keyword-based contextual advertising displays relevant ads that align with their interests. This approach boosts user engagement, drives desired action, and maximizes ad spend efficiency.
- E-commerce Contextual Advertising:
- Savvy fashion retailers strategically place ads on fashion-related websites and social media platforms, targeting engaged users interested in style and clothing. This approach increases conversions and sales by resonating with users inclined to explore fashion products.
- Outcome-Based Contextual Advertising:
- A fitness app uses outcome-based contextual advertising to promote its subscription service by strategically placing ads on health and fitness blogs, workout videos, and nutrition websites. This approach targets health-conscious individuals seeking fitness solutions, attracting users who are likely to engage and subscribe.
Outcome-Based Marketing (OBM) and Contextual Advertising: The Perfect Pairing
Outcome-based marketing (OBM) is revolutionizing the way brands connect with their audiences, and a key aspect of its success lies in its reduced reliance on expensive, inaccurate targeting strategies. By embracing contextual advertising, OBM unlocks the potential to not only acquire high-intent consumers but also discover new customer identities and revenue streams.
By showcasing ads in relevant contexts, OBM presents potential customers with the brand and its offerings when they are most receptive, improving brand favorability by as much as 22%. This targeted approach optimizes campaign parameters, increasing the probability of converting interested prospects into paying customers. As a result, the ROI and overall marketing performance are significantly enhanced. Discover how KURU Footwear saw a 767% increase in revenue in one year thanks to Perform[cb]’s strategic ad placements with relevant partners in the shoe and pain relief vertical.
In essence, contextual advertising provides the necessary context and relevance for OBM to deliver measurable results, making it an indispensable strategy for businesses seeking tangible outcomes and sustainable growth. Maximize your brand’s marketing success with this winning combination – download The C-Suite’s Guide to Outcome-Based Marketing to learn more today.
Put This Dynamic Duo into Action
In harmony, outcome-based marketing and contextual advertising are complementary strategies that work together to create a more effective and personalized customer acquisition approach. By combining the precision of contextual advertising with the customer-centric approach of OBM, marketers can optimize their ad campaigns and improve the user experience through targeted placements.
Ready to test out the power of this dynamic duo? Connect with one of our customer acquisition experts today.
Stay ahead of the game – download The C-Suite’s Guide to Outcome-Based Marketing now and equip your marketing team with decades of knowledge to drive always-on ROAS.