Contextual ads are dynamic ads that appear on a website. They can be in text or in the form of banners and can be effective when used in conjunction with PPC ads. Although the click through rates are lower than ppc ads, a contextual ad may increase your impressions and be visible in high traffic sites . When a website inserts contextual ads, the system scans the website content and retrieves relevant ads that correspond to the specific keyword(s). Google's contextual ads, aka Adsense, is shown below. The example shows an iPhone website with Adsense. Only the ads that are relevant to specific keywords of the website will be displayed.
