Category

Published on 01 Jul 2024
By Perion Staff
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Categories enable advertisers to group content and target audiences precisely. As online environments become increasingly complex, categorizing the content provides advertisers with an effective way to direct ad placements and ensure messages reach the right audience at the right time. 

Using categories efficiently helps brands optimize their campaigns, enhance user engagement, and improve overall advertising efficiency. This page will explore the definition, benefits, and examples of category-based targeting and compare it to keyword-based strategies. 

What is a Category in Advertising? 

In advertising, a category refers to a classification system that organizes content into distinct groups based on themes, topics, or types of information. These categories are derived from analyzing the content of web pages, apps, or other digital platforms. By associating ad placements with relevant categories, advertisers can ensure their messages align with user interests and the context in which ads appear. 

Categories help content targeting by using predefined inventories of keywords and phrases related to specific topics. For instance, a sports-related category might include terms like “football”, “basketball”, and “sports gear”. Advertisers targeting this category can display their ads on content pages related to these themes without manually selecting each keyword. This approach reduces complexity and allows for more scalable and efficient ad targeting. 

How Do Categories Help in Content Targeting? 

Categories facilitate content targeting by allowing advertisers to group similar types of content together, making it easier to match ads to relevant digital environments. This structured approach offers several advantages over purely keyword-based targeting:

Simplifies campaign management: Instead of selecting thousands of individual keywords, advertisers can target a single category that encompasses related terms.

Enhances contextual relevance: Ads are placed in environments that naturally align with the content themes users are interested in, increasing the likelihood of engagement.

Improves user experience: By aligning ads with the context of the content, categories help deliver less intrusive and more relevant messaging to users.

Examples of Category-Based Targeting

Category-based targeting can be used for a wide range of use cases and industries. This technology allows industries to target their audiences without resorting to cookies and first-party data. Here are some examples of use cases: 

  1. Retail brands: A fashion retailer can target the “Apparel” category to display ads on content related to clothing trends, shopping guides, and style blogs.
  2. Automotive companies: Car manufacturers can use the “Automotive” category to show ads on car review websites, automotive news platforms, and forums.
  3. Tech firms: A software company might target the “Technology” category, ensuring its ads appear on content about tech reviews, innovations, and product comparisons.

At Perion, we offer advanced cookieless targeting that uses a broad contextual category library that identifies the best sites for brands. Advertisers can target their audience by detecting the most relevant categories and keywords. 

Category vs. Keywords 

Although keywords may be used to group categories, targeting audiences based on categories and based on keywords requires different strategies. The table below highlights key differences between category-based and keyword-based targeting:

Aspect

Category-Based Targeting

Keyword-Based Targeting

Definition

Groups content by themes or topics

Targets specific keywords within content

Management Complexity

Offers a simplified campaign setup

Requires manual and detailed keyword selection

Scalability

High scalability

Limited by the number of selected keywords

Relevance

The targeting is contextually aligned with content themes

The targeting will depend on precise keyword matching

Ideal for 

Broad targeting across related content

Precision targeting for niche topics

Best for: 

  • Category-based targeting is best for advertisers looking to achieve broad coverage and contextual relevance. 
  • Keyword-based targeting it’s more suitable for highly specific campaigns requiring granular control.

Benefits of Using Categories in Ad Placements

Category-based targeting offers several advantages over other types of targeting as it offers an option that doesn’t rely on first-party data. It relates to the context of the ad environment, reduces the need for long keyword lists, and increases the ad relevance. Below is a brief list of the benefits of using category-based target: 

Efficiency: Categories streamline the ad targeting process, reducing the need for extensive keyword lists.

Contextual relevance: Ads appear in environments that naturally align with user interests, leading to higher engagement rates.

Scalability: Category-based targeting allows advertisers to reach a wide audience without sacrificing relevance.

Better user experience: By delivering ads that match the surrounding content, categories contribute to a seamless and non-disruptive user experience.

Improved campaign performance: With contextually aligned placements, advertisers can achieve better click-through rates, conversions, and overall campaign effectiveness.

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