An electronic device and method for replacing and outputting an advertisement are provided. The electronic device includes: a memory storing at least one program; a communication unit configured to receive context data to be used to determine a state of a user, from at least one external device; and a processor configured to replace and output an advertisement by executing the at least one program, wherein the at least one program includes instructions to: acquire user state information indicating the state of the user from the received context data, based on a learning model using one or more neural networks; and perform control to replace a previously determined first advertisement with a second advertisement determined based on the user state information and to output the second advertisement.