Abstract: System and method for contextual advertising in which a video file is encoded with cue points, and an XML file containing contextual advertisement information for at least three products is generated. When a first cue point is reached, the product image, product name and product description for the first contextual advertisement are encapsulated in a link to the product URL and displayed in a bottom panel. As each successive cue point is reached, the product image, product name and product description for each successive contextual advertisement are encapsulated in a link to the product URL for that contextual advertisement and displayed in the bottom panel, and the product image and product name for the contextual advertisement last appearing in the bottom panel are encapsulated in a link to the product URL and added to the side panel.