A contextual advertising system scans the text of a website for 

keywords and returns advertisements

to the webpage based on those keywords.[2] The advertisements may be displayed on the webpage
as pop-up ads. For example, if the user is viewing a website pertaining to sports and that website
uses contextual advertising, the user may see advertisements for sports-related companies, such as
memorabilia dealers or ticket sellers. Contextual advertising is also used by search engines to
display advertisements on their search results pages based on the keywords in the user's query.
Contextual advertising is a form of targeted advertising in which the content of an ad is in direct
correlation to the content of the web page the user is viewing. An example of contextual advertising
is an ad offering a special price on a flight to Italy appearing on a website concerning traveling in
Europe. Contextual advertising is also called "In-Text" advertising or "In-Context" technology.
Apart from that when a visitor doesn't click on the ad in a go through time (a minimum time a user
must click on the ad) the ad is automatically changed to next relevant ad showing the option below
of going back to the previous ad.
Contextual ads are less irritating than traditional advertising. That is why it influences user more
effectively. It shows user area of interest thus increasing the chance of receiving a response. [3]