The invention provides a roadside area-variable parking space management system with an advertising function and an operation method thereof. The system comprises a parking area, an on-site sensing execution end, a network communication layer and a background management center; the on-site sensing execution end comprises an MCU, a power source module, an earth induction coil, an earth induction device, a smart camera, a laser ranging module, a laser scanning module, a voice speaker, an LED display screen, an LED beam lamp strip, a fee charging module, a signal transmit-receive antenna and an advertising module; the network communication layer communicates based on an NB-IoT network; and the background management center is provided with an Internet of Things service system. According to theroadside area-variable parking space management system with the advertising function and the operation method thereof of the invention, a parking area is automatically planned according to the size of a vehicle, and the number of parked vehicles can be increased; fee charging is based on two modes, namely, reservation locking and model size, so that the fee charging is fair and reasonable; an advertising projection lamp is used to project an advertisement to the body of a vehicle or the ground, so that urban roadside parking spaces can be managed automatically in a standardized manner, and the system meets the management requirements of smart cities in the new era.