In display advertising, it is possible to target ads to websites based on the content of the site. In the Google Display Network, this is known as Keyword Contextual Targeting, where keywords are used to identify the content you are looking to serve ads next to. This is helpful in boosting response to a campaign because you can pair brands with similar content (e.g. airline tickets on a travel article or high-end shoes on a style guide). Best practice for keywords contextual campaigns is to create adgroups with a maximum of five to six closely-related keywords.
To use the tool, navigate to the Tools and Analysis tab in AdWords. After selecting the Contextual Targeting tool, you will be prompted to enter keywords relevant to your campaign. At this point, you can also select Advanced Options to select locations and languages.
As you can see in the image above, the tool provides a suggested adgroup name and the corresponding keywords based on the keywords you entered. Using the icons to the right of the adgroup name you can do one of two things:
1. Expand the adgroup to further drill down suggested adgroup names and keywords.
2. View predicted placements for the adgroup to get an idea of where your ads may appear.
The tool allows you to review and remove suggested adgroups that you do not wish to use. Once you have refined your list, you can select adgroups and either implement them directly into a campaign or export them to the AdWords editor.
In addition to being a very useful tool for building GDN contextual campaigns, this tool can also be used to help expand paid search campaigns.



But hasn’t this been around for quite some time now?
Hi Gavin, you are absolutely right, the tool is not new. Thank you for bringing this to our attention and apologies for the mix-up. The contextual targeting tool is a great resource for campaign development and is, in my opinion, not used enough for Google Display or Search campaigns.