Contextual targeting has improved a lot, especially with AI stepping in to analyze content, tone, and even emotion. It’s no longer about just matching keywords. Today’s contextual tools are smarter and more sophisticated. But there’s still a gap between theory and performance.
Emotion and attention remain hard to quantify in a way that moves budgets. Contextual can suggest alignment, but it can’t always prove outcomes. That’s a key reason why contextual isn’t about to overtake retail media anytime soon.
Retail media keeps gaining ground because it delivers what advertisers care most about: clear results. It connects the dots between ad exposure and actual purchases. That means marketers can see what worked, who converted, and how to repeat it. Attribution isn’t perfect, but it’s close enough to make a strong case in the boardroom.
First-party data is another major advantage. Retailers have a direct relationship with shoppers, which means they can offer high-quality targeting without relying on third-party cookies. That makes retail media both future-proof and privacy-compliant, while contextual still struggles with scale and consistency across platforms.
Speed also plays a role. Retail media lets brands launch and optimize campaigns quickly, especially for performance-based objectives. You can run a test and know within days whether to spend more. That kind of agility appeals to CMOs under pressure to prove value every quarter.
Contextual still has a place. For awareness campaigns, sensitive categories, or cookie-restricted environments, it offers a privacy-safe alternative. But it’s not the primary channel for driving transactions at scale. And that’s what most advertisers are asking for right now.
The future may bring new signals that help contextual better compete. But today, the budget flows toward what’s measurable, predictable, and easy to explain. Retail media checks those boxes. Contextual still has more to prove.
Sam Khoury
Founder, Cedar Consultants
Creative consulting solutions for Adtech