The Future of Contextual Advertising in a Cookieless Web

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Image showing contextual advertising written on a laptop screen

The news about Google Cookiepocalypse has been making headlines in the digital world. The domain is shifting towards a privacy-first model and contextual advertising. Although Chrome has currently stopped the complete removal of third-party cookies, other major browsers like Safari, Brave, and Firefox block third-party cookies by default. 

It is to be kept in mind that Google continues to develop other privacy-first initiatives like Google Privacy Sandbox. Users want more and more privacy on the internet. A cookieless web is surely to arrive in the future, in which the use of third-party cookies will be severely restricted by laws like GDPR and CCPA. 

Hence, the situation has led advertisers, publishers, and brands to pay more attention to contextual advertising. It presents significant challenges and exciting opportunities for publishers. 

In this detailed article, you’re going to find out the changes in contextual advertising in the cookieless future. You will further learn about: 

  • Leading contextual advertising platforms
  • Practical examples
  • Market trends
  • In-depth comparison with behavioral advertising and more

First, let’s briefly understand the definition of contextual marketing and what exactly it is. 

What is Contextual Advertising?

Contextual advertising is a marketing technique in which advertisements are displayed to users based on the content they are currently viewing. It does not consider online behaviour or historical data of users. 

For example, if you are currently reading an article about trekking, then the algorithm will display ads related to trekking boots, backpacks, or outdoor accessories on the same page. At its core,  contextual advertising is all about relevance driven by page content, not user profile.  

Contextual display advertising relies on advanced algorithms to analyse themes, keywords, and other details of the content on the page. It then shows the most relevant ads to the users. This makes it inherently privacy-respecting and effective for both users and brands.

Real Examples of Contextual Advertising 

Here’s a real example of contextual advertising. This webpage shows tips for hikers, and as you can see in the image, it displays ads related to travelling and gifting jackets. 

 First example of contextual advertising

Let’s take another example, the given image below shows a recipe for making muffins. The advertisement shown on the page relates to food and saving recipes. 

Second example of contextual advertising

Here’s another image given below of a website that gives sports news and information, promoting a certain coach on its homepage. 

Third example of contextual advertising

Similarly, you might see a post reviewing new laptop displays ads for related accessories or competing devices. You might have seen a baking tutorial on YouTube and get video ads for utensils, baking supplies, or related classes. You might have also noticed ads for gym equipment or protein powders on health and fitness articles. All these are contextual advertising examples. 

Why Contextual Advertising Matters in a Cookieless World

As previously stated, major platforms and browsers are leaning towards first-party data and restricting the use of third-party cookies. Apple’s iOS also blocks third-party cookies by default and restricts cross-site tracking. Another factor is cookie-based behavioral advertising.

Contextual Advertising vs Behavioral Advertising

Earlier behavioral marketing used to dominate and was considered to be very effective. It was one of the most popular strategies. It relies on tracking user actions across sites and builds detailed profiles to serve tailored ads.

Here’s a detailed tabular comparison between contextual and behavioral advertising for a better understanding. 

FeatureContextual AdvertisingBehavioral Advertising
Basis for TargetingPage content, keywords, topicsUser profiles, cookies, browsing history
Privacy ComplianceHighChallenged by regulations
User PerceptionLess intrusive, more trustedMay be viewed as ‘creepy’ or invasive
PersonalizationReal-time relevance based on contentDeep personalization based on past behavior
Brand SafetyHigh (placements are controllable)Variable (risk of mismatch/context issues)
ScalabilityEasier (no need for user tracking)Harder (needs robust data pipelines)
Resilience to Cookie LossFully resilientLoses effectiveness as cookies fade

Behavioral advertising is still currently in practice, but those who solely rely on it are going to face several headwinds. Privacy regulations like GDPR and CCPA are tightening the screws more and more around behavioral advertising. Publishers will have to explore effective targeting strategies, such as contextual, to remain in the competition. 

Contextual advertising offers several key advantages in the cookieless era:

  • Privacy Compliance: Personal data of the user is not needed. Hence, making it easier to abide by global privacy laws and requirements. 
  • Relevance: Ads show immediate interests of users based on the content they are watching or reading. Past browsing behaviour and history are not considered. 
  • Brand Safety: Publishers can control ad placement by context. They can better defend their reputation from unsafe associations..
  • Better Engagement: Studies show that users recall contextually relevant ads significantly better. They perform up to 2.2x better than generic or behaviorally targeted ones.
  • User Trust: Contextual ads help build and maintain consumer trust, as there is no invasive tracking. 

As the cookie world begins to crumble, contextual advertising is becoming the major go-to solution for reaching audiences without infringing upon digital privacy. According to Proximic’s 2024 State of Programmatic report, 78% of advertisers plan to increase or maintain their reliance on contextual targeting. 

How Contextual Advertising Works

Contextual advertising platforms use sophisticated crawlers and algorithms. These platforms analyze web content for keywords, semantics, topics, and even sentiment. 

Here’s a step-by-step breakdown:

  • Content Analysis: The ad server scans the webpage using natural language processing (NLP) and keyword extraction. The aim is to determine the primary subject or category.
  • Keyword & Topic Matching: Based on pre-set parameters, ads are matched with relevant keywords or topics present on the page.
  • Ad Selection: Ads from the advertiser pool that are aligned with those topics or keywords are selected for display.
  • Placement & Optimization: Ads are placed on the webpage to maximize engagement, click-through rate (CTR), and ROI.
  • Performance Tracking: These ads are then optimized based on page context and platform metrics. 

Best Contextual Advertising Platforms for Publishers

In the current advertising and publishing domain, one needs to have relevant and compliant platforms. Here are the leading platforms designed for publisher success:

Google AdSense

Google AdSense is a pioneer in contextual advertising. The platform analyses keywords and page topics. It then delivers highly relevant display ads. It is an accessible choice for new publishers seeking easy integration and predictable returns.​

If you want to know how to become an AdSense publisher, then click here to get the complete guide. 

Amazon Ads

Amazon’s advertising platform also integrates contextual targeting for its marketplace and extended network. It matches ads with shopping intent and the content of the page. Thus, helping publishers leverage retail-ready contextual placements.

Auxo Ads

Auxo Ads is another highly cutting-edge platform that can greatly benefit publishers. It offers privacy first and programmatic advertising. It uses machine learning to examine and analyse content and then serves contextually relevant ads across publisher domains.

Publishers benefit from programmatic auctions for optimal yield and compliance with privacy regulations. The platform also offers real-time reporting with granular control to maximize ad revenue without using personal data. Auxo Ads is ideal to prepare for the cookieless era. 

GumGum

GumGum uses advanced AI and computer vision technology. It scans real-time content and context. They have partnerships with major agencies and thousands of publishers. 

Outbrain

Outbrain is a popular content discovery platform. It specializes in contextual ad recommendations for publishers and advertisers. It displays ads alongside editorial content and then uses contextual signals to increase engagement and optimize revenue.

Benefits of Contextual Advertising

Contextual advertising offers numerous benefits, but here are some of its major advantages for publishers: 

  • Improved Targeting: Ads follow the user’s interests in real time without tracking their history.
  • Higher CTRs: Engagement rises when ads are relevant to the topic at hand. 
  • Reduced Ad Waste: Display only to audiences already interested, thus reducing budget waste.
  • Compliance and Future-Proofing: Easily aligns with privacy laws and user expectations. It is unaffected by third-party cookie bans.
  • Fights Banner Blindness: Contextual relevancy defeats the phenomenon where users ignore unrelated ads.
  • Brand Affinity and Trust: Non-intrusive and timely ads promote positive user experiences. This ultimately builds stronger brand relationships.

Let’s take a look at some statistics that highlight the advantages of using contextual advertising. As per GumGum’s Contextual Intelligence Report, advertisers who use advanced contextual targeting are seeing 335% higher engagement rates. They also noticed that contextual targeting is more cost-efficient than behavioral audience targeting.

Statistics related to contextual display advertising.

Additionally, GumGum partnered with Dentsu Aegis Network and conducted a first-of-its-kind research study. The study made comparisons between the cost-effectiveness and accuracy of behavioral targeting versus contextual targeting. The results were: 

Research about contextual advertising compared to behavioral advertising
  • eCPM (Effective Cost Per Thousand Impressions): Advertisers paid 36% less money to show contextual ads to every 1,000 people than they would have with cookie-based ads.
  • CPC (Cost Per Click): Every time someone clicked a contextual ad, the cost was 48% lower for advertisers compared to cookie-tracking ads.
  • vCPM (Viewable Cost Per Thousand Impressions): For contextual ads that are actually seen, advertisers paid 41% less than with cookie-based ones.

In 2023, the European Commission published a report called “Towards a more transparent, balanced and sustainable digital advertising ecosystem: Study on the impact of recent developments in digital advertising on privacy, publishers and advertisers”. The study highlights that: 

  • 65% of advertisers are planning to increase their contextual-based budgets.
  • 44% of publishers are already using context-based video ad tools themselves or are working with a third-party partner on contextual video solutions.
  • 15% of publishers are planning to explore roles for AI in matching ads and content to audiences.

These statistics show that contextual advertising is growing in relevance and benefiting the publishers, advertisers, and brands. Now, let’s look at contextual advertising market trends in the next section. 

Contextual Advertising Market Trends and Future

As per the Global Market Insights report, the global contextual advertising market size was valued at USD 301 billion in 2024. It is anticipated to grow at a CAGR of 20.2% between 2025 and 2034.

It is clear from the above statistics that the contextual advertising market is steadily growing. The main reasons behind the growth are: 

  • Digital ad budgets are increasingly shifting toward online, mobile, and streaming channels where contextual ads are more effective.​
  • OTT (Over-The-Top) and CTV (Connected TV) platforms are quickly growing. These platforms enable highly relevant and privacy-safe ad placements on streaming video content.​ According to Advertiser Perceptions and Premion’s research, 83% of CTV/OTT advertisers consider contextual targeting to be somewhat or very important.
  • Mobile and social media usage is increasing among the masses, which broadens contextual targeting opportunities for publishers and advertisers.​
  • Industry-wide privacy laws and consumer demand for data protection are also accelerating the adoption of contextual advertising over behavioral targeting.​
  • AI, machine learning, and real-time analytics are boosting ad relevance and brand safety. These technologies are matching ads to content, sentiment, and user context better than ever before.​
  • Integration of first-party data, commerce signals, and geolocation enhances targeting precision without sacrificing privacy.​
  • Demand for advanced, programmatic solutions streamlines contextual ad delivery and maximizes ROI for publishers.​
  • Publishers and advertisers prefer the transparency, audience control, and suitability offered by modern contextual ad platforms.

Challenges and Solutions in Contextual Advertising

No doubt, contextual advertising offers several promises, but it also presents some challenges that have to be considered. Here are some of the problems: 

Ad Placement Relevance

It is difficult to ensure that ads appear only in appropriate contexts. It requires constant monitoring and fine-tuning; otherwise, mismatched or even controversial placements can damage a publisher’s reputation.

The solution to this problem lies in adopting contextual advertising platforms with advanced natural language processing. Such platforms should also have semantic analysis and negative keyword or category filters. These systems offer granular controls for publishers to enforce brand safety and contextual accuracy.

Competition

As cookiepocalypse increases, more and more brands and publishers are turning towards contextual advertising. The numbers are increasing day by day. The demand for premium and high-traffic inventory is intensifying. Now, publishers are competing for both advertiser budgets and relevance and visibility.

To address this situation, platforms are optimizing ad auctions. This will enable programmatic deal types. It will also allow publishers to customize and segment their content inventory for the best match with quality advertisers.

Measuring Performance

Unlike behavioral targeting, contextual advertising falls when providing granular and user-level tracking. This makes campaign attribution and ROI analysis more complex. 

To deal with such scenarios, publishers can rely on aggregate metrics such as page-level engagement, contextual CTRs, and viewability. It is highly recommended that publishers leverage AI-driven attribution models that connect ad performance to page context and overall user journeys.​

Ad-blocking

The ad-blockers are a significant headache. As per research, the global ad blocker market size is estimated to be valued at USD 3.5 billion in 2025. It is further expected to reach USD 7.1 billion by 2032. This is a CAGR of 10.5% from 2025 to 2032. 

Ad Blocker market size is increasing, creating a problem for contextual marketing

Internet users want uninterrupted services and are highly concerned about their data privacy and security. Therefore, many people opt for blocking ads. The rise of ad-blockers can reduce impressions for even the most relevant contextual ads.

The solution lies in implementing ad formats that are less intrusive and more native to the content. Strong and clear consent management solutions are a must. Publishers should also work closely with ad tech providers who adopt ads dynamically and in compliance with user preferences.

The following section will further briefly highlight the best practices for contextual advertising, which should be considered by everyone.

Best Practices for Contextual Advertising in 2025 and Beyond

Some of the best practices for contextual advertising in 2025 and beyond are: 

  • Strategic Keyword and Topic Selection: Blend broad topics with specific and high-intent keywords for the best reach and relevance.
  • Test and Optimize: Continuously monitor your performance and revise your strategy based on contextual insights.​
  • Make use of Multi-format Ads: Appropriately use text, image, and video. It will maximize your engagement.
  • Invest in Trusted Contextual Advertising Platforms: This cannot be ignored. You must choose platforms that combine compliance with advanced matching and transparent reporting. 
  • Enhance Brand Safety: Make sure you use negative keyword/topic exclusions to avoid undesirable placements.

Conclusion

The use of behavioral advertising is becoming troublesome. Contextual advertising is increasingly becoming the first choice for both publishers and advertisers. It is a resilient, scalable, and privacy-compliant solution for the looming Google Cookiepocalypse. 

Cookies are fading, and demand for user-friendly privacy-first ad solutions will continue to grow. Those are still solely relying on behavioral targeting and advertising risk falling behind the competitive domain. One has to start leveraging contextual advertising platforms to thrive in the market. 

Ask yourself if you are actually ready to embrace the future of contextual advertising. If you are ready and want to get a head start, then Auxo Ads will be your trusted and powerful partner for privacy-first contextual advertising. 

Take control of your engagement and maximise your ROI in a cookieless future: discover more at Auxo Ads.

Author

  • Versha Rawat

    Assistant Content Manager with 4+ years of experience in the EdTech domain, now passionate about educating people on MarTech. I specialize in blending storytelling and research to create impactful, human-centered content.

Recent Post


Assistant Content Manager with 4+ years of experience in the EdTech domain, now passionate about educating people on MarTech. I specialize in blending storytelling and research to create impactful, human-centered content.

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