Interview: Contextual Advertising Instead of Blanket Coverage

Mr. Schmid, the latest Bring! Shopper Guide shows that 86 percent of Germans prepare their shopping lists digitally. How has purchasing behavior changed in recent years?

Juan-Pablo Schmid: These days, shopping doesn’t start in the store anymore. Consumers are more conscious and plan their purchases carefully. They compare offers, seek inspiration from brands, and often use digital channels alongside traditional media, such as brochures. Interestingly, retailer apps are mainly used in-store, while retailer-agnostic channels play a much greater role in the early stages of the shopping journey.

In your DMEXCO presentation, you talk about a fundamental problem in digital marketing: the confusion of reach with relevance. Could you elaborate on that?

Juan-Pablo Schmid: Many advertisers still believe that the more people they reach, the better. However, this approach results in generic messages that get lost in the noise. Contextual advertising reverses this approach. Instead of reaching as many people as possible, the focus is on delivering the right message to the right channel, thereby creating added value for consumers.

What is the specific difference between this and conventional advertising?

Juan-Pablo Schmid: Traditional advertising focuses on reach and predefined target groups. Contextual advertising, on the other hand, focuses on content, situation, and current task. In other words, traditional advertising optimizes “Who am I reaching?” while contextual advertising optimizes “When and how am I reaching someone?” and “What message is most appropriate at that moment?” For instance, when someone is making a shopping list or looking through offers, they are highly attentive and willing to buy. In this case, the advertising is perceived as complementary to the user experience rather than disruptive.

How important is timing in this context?

Juan-Pablo Schmid: It’s crucial. Being in the right place is not enough. The key is inspiring people to buy at the right time. For example, when someone is looking for dinner ideas and receives product suggestions at the same time, an intuitive connection is created between inspiration and the decision to buy.

Your data shows high price sensitivity among consumers. How does that change the requirements for contextual advertising?

Juan-Pablo Schmid: Consumers are looking for good deals. But a deal isn’t necessarily a big discount. It’s a feeling: It’s the feeling of getting more than you pay for. For contextual advertising, this means that it’s not just about presence, but also about offering relevant value. One person wants a discount, while another wants quality arguments. Thus, personalization becomes a success factor.

Where do you see the greatest potential for brands and retailers?

Juan-Pablo Schmid: Purchasing decisions are made at home. Today, consumers already base their choice of store on the available offers. Brands and retailers that succeed in getting their products selected during the planning stage at home face much less competition in the store. What’s on the shopping list ends up in the shopping cart. That’s why brands need to understand where their target audience is in the planning process. Are they looking for inspiration or specific products?

How does the purchasing process work today?

Juan-Pablo Schmid: Basically, consumers go through four phases. First, there is an unconscious preparation phase in which a “relevant set” of retailers and brands becomes emotionally anchored. This is followed by a triggering moment. This can be a recommendation or simply an empty refrigerator. In the third phase, consumers consciously plan. They write shopping lists and compare offers. The actual purchase takes place at the very end. The key to contextual advertising is that each phase requires different messages and touchpoints.

How do companies measure the success of contextual advertising?

Juan-Pablo Schmid: That’s one of the big challenges. Traditional metrics, such as reach or the number of contacts, are insufficient. Qualitative metrics are much more important. For example, how relevant do users find the advertising? Are more products being added to shopping lists? Is the conversion rate higher than that of generic advertising? Successful contextual advertising campaigns often lead to higher engagement rates despite lower reach, which is the ultimate goal.

How can companies specifically integrate context-based advertising into their strategy?

Juan-Pablo Schmid: Contextual targeting should be part of an overall data-based strategy. Companies need to understand: Where are my customers in their decision-making process? Which contexts are relevant to my target group? How can I meaningfully support the customer journey with my messages? The goal is to become firmly integrated into the shopping routine instead of getting lost in the advertising environment.

What is your conclusion about the future of digital marketing?

Juan-Pablo Schmid: The rise of digital shopping planning makes contextual placement more important than ever. Successful brands will establish an effective connection between their brand message and the shopping cart. Ultimately, it’s relevance, not pure reach, that determines success. Those who understand this will also succeed in an increasingly fragmented media environment.