How contextual advertising is reshaping the game

Imagine walking onto a footy field only to be told the rules of the game have changed. You’re not just playing to win anymore — you need to figure out a whole new way to play. That’s exactly where the digital advertising industry finds itself heading into 2025.

For me, 2024 was about navigating change. I stepped into my role at GumGum at a time when Australian advertising is undergoing one of its biggest shake-ups in years. But as any footy fan will tell you, new rules require you to rethink your tactics. And sometimes, it can be the catalyst for a better game plan altogether.

The year that changed the game

2024 delivered two monumental shifts in how we approach advertising. First, the Privacy Act amendments landed with the force. Businesses now need to do more than just talk about respecting data—they have to prove they can do it. Clear consent, transparent practices, and hefty penalties for breaches are the new rules of engagement with consumers.

Second, Google’s delay on third-party cookie deprecation gave some advertisers a reprieve of sorts. But this delay is little more than a signal to prepare for a future free of cookies.

Solutions built for 2025

So, how do marketers adapt to a world without invasive data tracking? By putting relevance first — and that’s where contextual advertising comes in.

Instead of following consumers around the web, contextual advertising does things in a more respectful way. Using AI, it matches ads to the content people are consuming, tapping into the moment and the mindset. For example, if you’re searching for winter clothes for your upcoming Japan trip and then an ad for a ski accommodation in Niseko appears – that’s contextual advertising. It’s advertising that’s in sync with what people are doing, not where they’ve been.

Credit: Will Francis on Unsplash

This approach is all about creating a better digital experience for everyone. When ads resonate with what people are already interested in, trust builds, engagement grows, and the path to purchase widens.

Why contextual advertising matters

The numbers speak for themselves. Australians are consuming more digital content than ever. In 2024, internet advertising expenditure hit $15.6 billion – a 9.7% jump from the previous year.

Among the standouts is video advertising, which grew by an impressive 18.6%, reaching $4.1 billion in spend. Contextual advertising’s precision in targeting at the video level ensures less wasted impressions and more opportunities to scale across premium environments.

The numbers are clearly demonstrating that marketers can be successful in the future by embracing contextual advertising. For Aussie marketers, the takeaway is obvious – meeting consumers where they are, in the right mindset, is the key to unlocking an ad’s full potential.

Future proofing your advertising strategy

As we gear up for 2025, it’s time to rewrite the playbook. Marketers must align their strategies with privacy-first frameworks while adopting innovative technologies. And remember, it’s not just about technology – it’s also about people. Empowering teams with the skills, tools, and confidence to navigate this evolving landscape is critical. Ultimately, it’s the people behind the strategies who drive innovation and make campaigns resonate.

The opportunity before us is enormous. There’s a chance to create new standards that improve the whole industry. By prioritising privacy and relevance, we’re setting the stage for a better, more sustainable future for digital advertising.

Matt Coote is the country manager for Australia at GumGum.