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EP 01Ad products

How to build a contextual targeting product

From a taxonomy to a signal buyers trust, without user data

1 min read

TL;DR

  • Pick one buyer and one job before you pick a taxonomy.
  • Classify pages with a model, but price on outcomes, not on labels.
  • Ship a small set of segments that beat cookies on one metric.
  • Sell it as a test with a clear success bar, then expand.

The problem

Buyers lost the user signal. Cookies are going, device IDs are capped, and AI answers keep people off the page. What is left is the page itself: what it says, and what the reader wants while reading it.

A contextual product turns that page into a signal a buyer can bid on. The publisher gets a higher CPM. The buyer gets reach without user data. You get a product that works in every privacy regime.

The VP calls

The call

Who is the first buyer?

Agencies · Brands direct · DSP partners

Agencies. They test fast and talk to each other.

The call

Build or license the taxonomy?

IAB standard · Custom · Hybrid

Start with IAB so buyers can map it. Add custom segments only where you win.

The call

How do we price it?

CPM uplift · Flat fee · Revenue share

CPM uplift on the first deals. It ties our price to their result.

The build

1

Freeze the taxonomy

Owner: PM + Data science2 weeks

Pick the segments buyers already ask for. Write one sentence per segment that a human labeler can follow.

2

Build the eval set

Owner: Data science3 weeks

Label 2,000 pages by hand. This is the bar every model change has to beat.

3

Classify at serve time

Owner: Engineering6 weeks

Cache labels per URL, refresh on change, and return a segment in under 20 ms.

4

Pass the signal to the auction

Owner: Engineering + Partnerships4 weeks

Send segments in the bid request so every DSP can read them. Start with deal IDs.

Diagram · How a page becomes a bid
Text version
  1. Page: URL + text
  2. Classifier: model, cached
  3. Segment: IAB + custom
  4. Bid request: deal ID
  5. Winning ad: CPM uplift

Mistakes to avoid

  • Shipping 400 segments when buyers use 20.
  • Measuring label accuracy and calling it success. Buyers care about outcomes.
  • Selling before you have one case study.

Go to market

Package it as a test: four weeks, one brand, one metric. Price the test low and the renewal on uplift. Write the case study before the test ends, then fill in the numbers.

Checklist

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Next episode

EP 02Live

How to build an AI agent that takes actions for users

Scope, evals and guardrails for an agent people let touch real money

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