Contextual Advertising is a type of Web advertising Content match has greater potential for content providers, publishers and advertisers, because users spend most of their time on the Web on content pages. In past researches, Contextual targeting technology works by searching the website and looks up relevant keywords But Nowadays, In contextual advertising, matching is determined automatically by the page content, which complicates the task considerably. We Proposed a System which can target the large group of consumer on internet. In Our system we make contextual targeting more relevant with Extraction of relevant entities from the web page. We extract the entities from web page, which is of interest to the consumer. We target the interest of internet user and put up the ads according to their interest. The system is designed in such a way that it can extract entities (Name, Place, Title, Location, date etc) from web page and ad publisher put up a advertise on that page which include those entities which are extracted from page. This Process will extract different types of entities, which will identify by different patterns prepared by the rules based approach. The described system able to find out the entities in many context using pattern identification. Once pattern will match entities are extracted and used by ad publisher for publishing the ads according to the context of entities. The above described method is more relevant and effective and it will target more consumers and generate revenue by advertising.