Few things break the flow of a narrative as much a non-context insert. The same holds good in respect to advertising.
Various case studies show that even the best of advertisements, which have a feel-good factor about them, do not do well if they are not fitted into the context. A report from the University of Oxford supports this wherein it was observed that cheerful ads when inserted in between a gloomy part of the video do not create much impact.
In many cases, in-video ads which are not relevant to the video being watched, tend to put off the viewer and might not create the desired impact. Whereas, contextual advertising can help to better connect with the viewer and communicate the message more effectively.
In contextual advertising, ads related to the content being seen or read are placed to ensure better connections with the audience. Video ads can have more impact through in-video contextual advertising where in-video ads are placed relevant to the content being played out in the video.
This ensures that the viewer finds the advertisement to be closely related to what is being seen, and therefore, would be more interested in knowing about the product.