Systems and methods for efficient processing and presentation of advertisement based on content re-encoding are provided. An example method includes receiving, by a receiving device, the program content stream and determining, by the receiving device, encoding information of the program content stream. The example method also includes determining timing for presenting a target advertisement, responsive to determining the timing for presenting the target advertisement, initiating re-encoding of content of the target advertisement to generate re-encoded advertisement content based on the encoding information, and enabling playback of the re-encoded advertisement content in accordance with the timing for presenting the target advertisement.