Compado improves Contextual Advertising AI — Ad CTRs follow suit
Tech Platform Compado gives their Contextual Advertising AI the ability to understand a user’s individual context — and grows Ad Click-Through-Rates (CTRs) by 5% year-over-year.
The Berlin based start-up looks back at an eventful Q1: Tech Blog Mashable just added Compado to their watchlist “Ad Tech companies to watch in 2023” when shortly after the German government awarded Compado a research allowance for their work on Artificial Intelligence (AI).
German Government subsidizes AI Research
Compado announces that, as of February 2023, their research activities, centered around AI and Machine Learning for Contextual Advertising, are supported by the German state.
Through their research-allowance (“Forschungszulage”) program, the German government subsidizes Compado’s research on path-breaking Contextual Advertising AI.
Compado’s Contextual Advertising AI acquires capability to understand individual context
In Q1, Compado’s engineers and data scientists released the so-called “Cats Model” – An AI that looks at various categories to understand the context a user’s in better than ever before.
Before displaying an individualized brand recommendation to a user, the Cats Model looks at categories (“Cats”) that determine a user’s individual context, such as,
- Contextual category (what topic area a user is interested in)
- Domain (publisher a user’s originating from)
- Country (GEO a user’s device is based in)
- Language (language preference of a user)
- Browser (program user employs to navigate the web)
- And many more
By looking at a spectrum of categories before making a recommendation, Compado’s AI deciphers the individual context a user’s in.
“This goes beyond standard language- or image-processing that merely looks at the content a user is reading or looking at,” comments Emanuel Hoch, Chief Technology Officer (CTO) of Compado.
“By smartly grouping and interpreting categories, our AI manages to display highly relevant and contextually targeted brand recommendations, all without violating user privacy, without drawing on the user’s browsing history or without using third-party-cookie data,” adds the CTO.
Ad CTRs on the Rise
While Compado improves their AI, Ad CTRs are on the rise: For Q1-2023, the Tech Platform reported Ad CTRs of ≈ 20%, while the previous-year period (Q1-2022) saw Ad CTRs of ≈ 15%: In Q1, every fifth user decided to follow Compado’s contextual brand recommendations.
“This is due to high relevance,” says Andreas Hoogendijk, Chief Executive Officer (CEO) of Compado. “We are displaying brands that do not only match what a user is looking at, but that show at the right point in time and take into account a user’s individual context.”
“Growing CTRs by 5% year over year is not a walk in the park and only possible with improved technologies,” adds the CEO.
Contextual Advertising for Brand Awareness
In Q1, Compado announced a cooperation with Berlin-based ShowHeroes SE, a distributor of branded video advertising. “I am very glad that we have joined forces,” says Hoogendijk.
Through ShowHeroes leading consumer brands will have the opportunity to use Compado’s contextual advertising to grow their brand awareness.
“Contextual advertising is not just for finding new customers, it’s highly effective for making consumers aware of one’s brand,” concludes Hoogendijk.
Compado is a B2B tech platform for contextual advertising and content monetization. Founded in 2016, the platform provides cookie-free contextual advertising to consumer brands and cookie-free content monetization to publishers. The platform’s proprietary contextual advertising puts brands in front of shoppers – and helps publishers to monetize their content through contextually targeted brand recommendations.
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