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Date:
March 19, 2025

Contextual Advertising in Media and Entertainment

As media consumption increasingly shifts toward digital platforms, advertisers are rethinking their strategies to capture audience attention effectively.Traditional targeting methods that rely on demographics, user data, and third-party cookies are becoming less viable due to evolving privacy regulations and changing viewer behaviors. In this landscape, contextual advertising has emerged as a powerful approach for media and entertainment companies looking to align advertising with content in a meaningful way. This shift has created both challenges and opportunities for advertisers.

What is Contextual Advertising?

Contextual advertising is the practice of placing ads that are directly relevant to the content a viewer is watching, rather than being based on their personal data or browsing history. This strategy leverages the tone, theme, and emotional context of content to determine the most suitable ad placements.

For example, an ad for a travel experience appearing during a heartwarming reunion scene in a film about family bonds is far more impactful than a generic placement. The key advantage is that contextual ads feel natural, non-intrusive, and more relevant, leading to increased engagement and improved ad recall.

A recent AVCA study found that 42% of viewers were more interested in brands and products when ads were placed next to relevant content, and 38% learned more about products shown in AI-enabled contextually targeted ads.

WhyContextual Advertising Matters to Media & Entertainment Companies

1. Ensuring Brand Safety in a Complex Media Landscape: With a vast and diverse content ecosystem, brand safety is a growing concern for advertisers. Ads appearing in inappropriate or controversial content can damage a brand’s reputation.

Unlike traditional keyword-based targeting, which may misinterpret context, AI-driven contextual advertising ensures that ads appear in culturally appropriate and brand-safe environments.

Brand safety varies from country to country. Content considered neutral in one region may be perceived as controversial in another. Effective contextual advertising solutions must account for:

  • Local sensitivities
  • Regulatory restrictions
  • Cultural norms

This adaptability protects advertisers from unintended associations while preserving viewer trust across global markets.

2. Achieving Cultural Relevance for Global Audiences: With media distribution now spanning international markets, a one-size-fits-all approach to advertising no longer works. Different cultures interpret content in unique ways, and an ad that resonates in one region may be ineffective—or even offensive—in another. Contextual advertising powered by scene-level intelligence allows advertisers to tailor messages that align with regional values, traditions, and cultural expectations, increasing engagement and brand affinity across markets.

3. Scene-Level Intelligence: Placing Ads at the Right Moment: Beyond broad thematic targeting, scene-level intelligence enables advertisers to place ads at moments of peak emotional engagement. AI-powered analysis can detect pivotal narrative shifts, humor, suspense, or joy, allowing brands to insert ads at moments where viewers are most receptive. This enhances ad recall and emotional association with the brand, making advertising more effective and less intrusive.

4. A Privacy-First Alternative to Audience Targeting: With increasing data privacy regulations, brands must seek alternatives to traditional audience-based targeting. Contextual advertising provides a privacy-compliant solution by relying on content analysis rather than user tracking. This ensures brands can still deliver highly relevant messaging without relying on third-party cookies or invasive data collection.

A Smarter Approach with Advanced AI Technology

One advanced solution driving innovation in contextual advertising is SpherexAI. This technology analyzes content at a granular level, identifying specific scenes and moments where viewer engagement peaks. By processing visual, audio, and narrative elements, it can determine optimal ad placement opportunities that complement rather than interrupt the viewing experience.

SpherexAI provides scene-level intelligence that helps advertisers navigate the complexities of global content distribution, ensuring that ads align seamlessly with viewer expectations. This approach allows brands to:

  • Maximize engagement
  • Maintain brand integrity
  • Unlock new revenue opportunities
  • Deliver a more natural and immersive ad experience

NextSteps

For more information on maximizing your ad impact, visit Spherex or stop by booth W1456 during the upcoming NAB Show in Las Vegas. Use code NS7763 for a complimentary exhibitpass.

Related Insights

Why Content Differentiation Matters More Than Ever

In today’s fragmented global media landscape, a one-size-fits-all approach no longer works. Media companies face increasing pressure to tailor their content strategies to suit diverse regulatory standards, cultural norms, and viewer expectations.To thrive, they must adopt a new mindset—content differentiation—as both a business imperative and a competitive advantage.

What Is Content Differentiation?

Content differentiation is the strategic process of customizing how media is packaged, presented, and monetized based on the context in which it is distributed. Unlike basic content localization, which focuses mainly on language and format adjustments, content differentiation goes deeper. It aligns content with the regulatory, cultural, and commercial realities of each market, platform, and audience.

The goal is to ensure that content resonates locally while maintaining global scale. Differentiation helps media companies maximize reach, reduce regulatory risk, and improve monetization—all without compromising creative intent.

Why It’s Needed Now
  • Regulatory Complexity: Governments are tightening rules around age ratings, depictions of violence, sexuality, religion, and topics of national interest. These laws vary widely across regions, creating a compliance minefield for global distributors.
  • Cultural Expectations: What works in one market can trigger backlash in another. Cultural nuances—around gender roles, family dynamics, or social taboos—shape how content is perceived and whether it’s embraced or rejected. In many cases, outdated depictions of identity, relationships, or social dynamics can resurface as flashpoints when content is distributed years later in new markets.
  • The Importance of Metadata: Streaming platforms now host massive libraries with considerable overlap in titles across services. In this environment, having accurate, detailed metadata—including production details, talent, , and advanced descriptors—is critical for making content discoverable, marketable, and ultimately profitable. Without it, even high-quality content risks being overlooked.
Meeting the Challenge with SpherexAI

Solving these challenges requires more than manual review or basic tagging—it demands a scalable, intelligent system that understands both the content itself and its contextual significance. That’s where SpherexAI comes in.

SpherexAI is a high-fidelity metadata platform built to help media and entertainment companies implement content differentiation at scale. Using multimodal AI, it analyzes every frame of video—evaluating visuals, audio, dialogue, and on-screen text—to generate rich, actionable metadata that informs compliance decisions, discovery, and monetization.

SpherexAI extends beyond basic content tagging. It analyzes material against global regulatory requirements, identifies cultural nuances and sensitivities, and detects potential risks prior to distribution. Additionally, it enhances content visibility in crowded platform environments by enriching metadata with precise descriptors, scene-level details, emotional tone analysis, and contextual insights—elements that improve content discovery and ad targeting.

Learn More

If you're ready to differentiate your content for every audience, platform, and region, SpherexAI can help. Contact us to schedule a demo or speak with our team about how metadata-driven intelligence can power your global strategy.

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NAB 2025 – Recognizing a Changed Industry

Another National Association of Broadcasters (NAB) conference is in the books, and if anything has changed in the media and entertainment industry, the conference and attendees were there to discuss it. From content evolution to changes in audience preferences to AI being everywhere, to trade uncertainty, it was a topic of conversation at NAB 2025. Official categories included: Artificial Intelligence, Cloud Virtualization, Creator Economy, Sports, and Streaming. If a general conclusion could be drawn, it’s that the legacy media business no longer cuts in today’s market, and to survive these new realities, businesses must rethink how they fit in.

Everything Is Changing

One of the biggest takeaways from NAB is the impact the creator economy is having on the industry. Dozens of panels focused on how individuals and small-team productions have upended traditional business models and economics, attracting large audiences from traditional producers while also siphoning away ad revenues and production contracts. Recognizing this trend, hundreds of exhibitors demonstrated how their products or services support all types of creators while also providing benefits to traditional media companies. The NAB also introduced two new initiatives to support this growing sector: the Creator Council and the Creator Lab.

In a keynote session, media cartographer Evan Shapiro highlighted the extent of the shift, pointing out that by 2027, the creator economy is expected to grow to half a trillion dollars, nearly doubling its value from last year ($250 million). Shapiro, recognizing the difference between the creator economy and influencers, cites their effectiveness in attracting and engaging large audiences without having to deal with “gatekeeper-led content.” His final point was that this new reality presents the M&E industry with two options: embrace it or get left behind.

Market and Regulatory Uncertainty

The current uncertainty in global trade markets and the impact of tariffs on product purchases has cast a significant chill on many exhibitors at NAB. This was especially true for those companies whose products were manufactured or included parts from impacted countries or markets (services are not yet subject to tariffs). Many companies encouraged customers to expedite purchases to take advantage of existing inventories and avoid significant cost increases as tariffs are implemented. Attendees and speakers also expressed concerns about how regulatory changes from the FCC and regulators in other countries might impact  children's television programming, the news distortion policy, technical rules (e.g., ATSC 3.0), and TV carriage rules (e.g., non-duplication, and syndicated exclusivity).

Monetization Evolves as Markets Evolve

The continued growth of OTT/FAST and the rapidly expanding creator economy means competition for eyeballs and ads will only become more intense. Evidence of this was on clear display during NAB 2025:

  • Traditional Broadcast Disruption: The rise of streaming services and changing viewer habits are challenging traditional broadcast models, necessitating a reimagining of revenue strategies.
  • Fragmented Audiences: The audience is increasingly fragmented across linear streaming, on-demand platforms, and traditional broadcast, making it more difficult for advertisers to reach consumers effectively.
  • Hybrid Models: Streaming services are increasingly adopting hybrid monetization models, such as AVOD or FAST, to supplement their subscription revenues.

A key component of all of these strategies is high-fidelity metadata. Without it, content marketing, search, and discovery, as well as contextual advertising, are much more difficult to achieve. With it, compliance, brand safety, and audience acceptance increase significantly.

AI Everywhere

Artificial Intelligence (AI) and its increasing impact on content creation, marketing, and virtual production were everywhere at NAB 2025. Nearly 300 exhibiting companies from around the world demonstrated products that included or were enhanced by AI across every phase of content production, marketing, advertising, and distribution. Among them, Spherex highlighted its flagship product, SpherexAI, and demonstrated how it is transforming global video compliance and contextual advertising through scene-level intelligence and cultural insight. It also facilitates ad placement where they will resonate and yield better audience results.

The takeaways from NAB 2025 paint a clear picture: the media and entertainment landscape is in constant flux, demanding adaptability and innovation for survival. The undeniable surge of the creator economy, coupled with market and regulatory uncertainties and the evolving monetization models driven by streaming, presents both challenges and opportunities for traditional and new players. Overlaying all of this is the pervasive influence of artificial intelligence, poised to reshape every facet of the industry.

Ultimately, NAB 2025 underscored a fundamental truth: standing still is no longer an option. The future of media and entertainment belongs to those who embrace change, leverage new technologies, and understand the shifting dynamics of both content creation and audience engagement.

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Experience SpherexAI at NAB 2025

Spherex is headed to Las Vegas for NAB 2025, and we’re bringing a bold new expansion of our flagship product, SpherexAI. Join us at Booth W1456 in the West Hall of the Las Vegas Convention Center from April 6-9 to see how we’re transforming contextual advertising with cultural and emotional intelligence.

As the media and advertising industries look to AI for smarter targeting and better brand alignment, SpherexAI offers a groundbreaking solution. By analyzing the cultural and emotional context of streaming video at the scene level, SpherexAI helps advertisers engage audiences more meaningfully while reducing the risk of misaligned or unsafe ad placements.

The Power of Scene-Level Intelligence

At the heart of our advertising innovation is SpherexAI’s multimodal platform, which processes thousands of signals from every frame—visuals, audio, dialogue, and on-screen text—to create rich metadata that understands the tone, mood, and narrative context of video content.

This deep, scene-level intelligence powers a range of capabilities that can dramatically improve campaign effectiveness:

  • Smarter Ad Targeting – Ads are delivered when viewers are most emotionally receptive, based on the precise tone and content of each scene.
  • Seamless Integration – Ads align with the story arc instead of disrupting it, increasing both engagement and recall.
  • Cultural Sensitivity at Scale – Our patented Cultural Knowledge Graph ensures ad messaging aligns with local customs, values, and regulations in over 200 countries and territories.
  • Enhanced Brand Safety – SpherexAI actively prevents ad placements in scenes that could be offensive, inappropriate, or reputationally risky.

Whether you're building a global campaign or fine-tuning messaging for a specific region, SpherexAI ensures your ads resonate with cultural nuance and emotional precision. Best of all, this isn’t vaporware; SpherexAI can be added to your workflows today!

See It In Action

At NAB 2025, we’ll be demoing how SpherexAI empowers advertisers to connect with audiences in powerful new ways—by aligning their campaigns with the content people are already emotionally invested in.

Book a Demo

Ready to experience the future of contextual advertising? Book a meeting with the Spherex team or drop by Booth W1456 during NAB 2025. We’re excited to show you how scene-level cultural intelligence can elevate your strategy and unlock deeper audience engagement.

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