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Content promotion highlights a feature/offering of the service. An advertisement is an third-party promotion for a product you may or may not be interested in and has no bearing on the online service or your use of the console.

Content promotion or feature advertising is a means to letting the masses know about new content or features of a system. Not everyone is out in the forums or keeping up with the latest news and trends. If those ads are targeted, it may even be more helpful. For instance if I just bought a game and Microsoft has a sale on the DLC for the game. A targeted ad to let me know the DLC is on sale would be a bonus. Likewise, if Xbox Music knows I have a particular artist in my collection, but I don't have a particular album or a new album was released, an ad for that album might not be so unwelcomed.

I personally don't mind content promotion, and on Xbox LIVE don't generally mind third-party promotions. They're not, in my opinion obtrusive. That said, it's nice that the landing page is devoid of third-party commercial ads.