Google has announced the introduction of a Contextual Targeting Tool to help display advertisers select and reach customers more easily with the Google Display Network - part of the AdWords advertising service.

By using contextual targeting, advertisers can reach potential customers as they read webpages related to the products or services being sold and this new tool enables advertisers to create new contextually-targeted campaigns more easily and quickly. The tool automatically builds keyword lists that can be used to show ads on relevant webpages in the Google Display Network.

When planning and selecting lists of target keywords, the tool can help create new groups of terms more automatically and also provides suggested bids and predicted placements to give advertisers an idea of the types of sites in the Display Network where the ads can appear.

The Contextual Targeting Tool has previously been available to advertisers using AdWords Editor but this new launch means that all advertisers can now access it from the Opportunities tab in their AdWords account. However, advertisers will still need AdWords Editor to implement the new adgroups in their account for now but Google says that this requirement will be lifted soon and so that the new adgroups will also be added directly from the online AdWords account in the coming months.