Abstract: A system and method of providing advertisements to telephones and mobile phones during the set up of a call connection in a program controlled telephone exchange system includes the following steps: (1) storing advertisements corresponding to profiles for various phone users; (2) providing the advertisement feeds upon the consent of the phone call initiator over the phone when requested by the telephone exchange; (3) identifying the caller and selecting a suitable advertisement from on-line/off-line server; and (4) connecting the on-line server inport source to an Internet site and an output source to the telephone exchange via advertisement and playback circuit.