I believe it means traffic that fits in with the context of your web page. So that if your web page is about acquarium fish, then the visitors that come to this site is specifically orientated to the topic of acquarium fish - that they didn't come to your site looking for something else.
I would also imagine that traffic is actually been generated by the use of relevant keywords (ie words relating to the subject of acquarium fish) and perhaps generated by some sort of active marketing campaign eg Pay Per Click ads, article marketing etc - in other words the website isn't just sitting there without much focused traffic coming in.
People who have Google Adsense ads on their web pages, will invariably ensure their web pages are properly optimized with relevant keywords which directly relate to the subject of their web page. Google will then be able to serve up CONTEXTUALIZED ads on those pages ie ads which fit into the context of the web page topic so that the visitors that come looking for information on acquarium fish, will also see Google Adsense ads that are also on the topic of acquarium fish.
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