BEYOND PERSONALISATION: THE CHALLENGES OF CONTEXTUAL MARKETING

Examples of contextual marketing include:

• Relevant ads against search results

• Mobile apps that offer discounts based on your location

• Social media adverts that respond to the weather

It’s the next step in a progression from mass marketing to segmentation, personalisation and finally contextual. Bill Brand, president, HSN

Contextual marketing presents a number of challenges to consider. These include:

SOURCE: Big Brother Watch / Comres, 2013

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Only 14% of marketers feel they leverage consumer, media and transaction data effectively

SOURCE: Millward Brown Digital, 2015

Adapting marketing processes at scale

We can decide where to invest our resources in on an ongoing basis. This means the whole working process changes. The challenge is: how do you scale it up?

Asmita Dubey, chief marketing officer, L’Oreal China

The goal of using contextual information should be to provide greater value to the customer, not bombard them with advertisements.

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Respecting customer privacy

Understanding contextual information

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Nearly 8 out of 10 consumers globally (79%) are concerned about their privacy online

To be truly transformational, companies must learn from contextual insights to offer greater value to their customers.

SOURCE: Beyond personalisation: The challenges of contextual marketing, Economist Intelligence Unit, 2015

It is seen by many as the latest phase in the evolution of marketing.

Contextual marketing is the extension of personalisation with the addition of information about an individual's current context — such as their location, their mood or their buying intentions — to offer them useful products and services.