Why is direct placement targeting sometimes more effective than contextual targeting?

Direct placement targeting, also known as managed placements, is sometimes more effective than contextual targeting because it gives advertisers greater control and precision over where their ads appear. Contextual targeting relies on Google's algorithm to analyze the content of a webpage and display ads that are relevant to that content. While generally effective, this method can sometimes lead to ads appearing on pages that are only tangentially related to the advertiser's desired audience. Direct placement targeting, on the other hand, allows advertisers to specifically choose the websites or even individual pages where they want their ads to be shown. This is particularly beneficial when advertisers know that a particular website or section of a website is highly frequented by their target audience, regardless of the specific content on those pages. For instance, a luxury car brand might directly target the homepage of a high-end financial news website, even if the specific article content varies, because they know the audience is likely to be affluent and interested in their product. This precise control can lead to higher click-through rates and conversion rates, making direct placement targeting a more effective strategy in certain situations.