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contextual advertising
Last modified: Tuesday, January 29, 2008 

(n.) 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.

See "How Affiliate Marketing Works" in the "Did You Know..." section of Webopedia.
Also see Refer-It.com, a directory of referral & affiliate programs for e-commerce, featuring information on over 6,500 affiliate programs.

  Related Links

Contextual Advertising, Part 1 of 2
The rise of choice, and the decline of mass marketing.

Contextual Advertising, Part 2 of 2
How does the existence of a contextual ad unit and marketplace improve publishers' fates (and fortunes)? How will it benefit advertisers?

Contextual Advertising: The Consumer's Point of View
Not since the turbulent heights of the consumer-versus-advertiser pop-up debate has a form of Internet marketing drawn so much attention or incited so much raw anger.

ECommerce-Guide
ECommerce-Guide is the source for e-commerce news, trends, product reviews, and how-tos for businesses running online or e-commerce sites and selling and marketing products and services.

Google Throws Hat Into The Contextual Advertising Ring
SearchEngineWatch looks at Google's foray into contextual advertising and its potential effect on the industry.

Refer-It.com
The Refer-It database lists thousands of programs offered by e-commerce vendors that share revenue with Website owners.

Webopedia's 'Did You Know... How Affiliate Marketing Works?'
Affiliate marketing is the term used to describe a revenue-sharing plan where an online automated marketing program lets Webmasters place an advertiser's banner ads or buttons on their own Web site. Webmasters will receive a referral fee or commission from conversions when a customer has clicked the affiliate link and performs the desired action, such as make a purchase or opt-in for downloads or newsletters on the advertiser's site.

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Electronic Commerce

Online Advertising

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Related Terms

above the fold

advertiser

affiliate program

banner

banner rotator

click fraud

CTR

electronic commerce

hit

pop-up ad

Web analytics

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