Contextual advertising is a digital marketing approach that targets ads based on the content a user is currently engaging with rather than their personal data or past behavior, offering a privacy-friendly alternative to traditional behavioral advertising. This strategy aligns ads with the themes and keywords of a webpage, app, or video to deliver timely, interest-based messages, making it particularly relevant in light of privacy regulations like GDPR and CCPA that restrict the use of personal data and third-party cookies. Contextual advertising leverages AI and machine learning to analyze content, understand context, and optimize ad placements in real-time, which can result in higher engagement and conversion rates compared to non-contextual ads. This method has expanded across various digital channels, including websites, social media, video platforms, podcasts, and connected TV, allowing advertisers to reach broader audiences without compromising user privacy. As the advertising landscape shifts towards a cookieless world, contextual advertising is emerging as a robust alternative, projected to grow significantly in the coming years due to its compliance with privacy standards and its ability to deliver effective, real-time customer engagement.