Contextual Advertising:
- The term applied to ads appearing on websites or other media where the ads are selected and served by automated systems based on the content displayed by the user.
Google has been a mastermind at contextual advertising in the last few years. These ads are very effective because the user is already interested in the particular topic, then relevant ads are served to them. It’s usually a more targeted, easy sell.
Many other advertising networks are working contextual ads that automatically link keywords into their advertising repertoire. This allows for directed keyword ads with little work from the webmaster.
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Glossary Definition From ABC’s of Online Marketing by Alexandra Wharton, Issue 22, Revenue Magazine

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