Speaking at the recent IAB Conference, Google explained how they want to make their display advertising sexy. They will also be adding social elements to their display ads; such as commenting on, sharing and subscribing to ads. Also included was a new ad format for their YouTube site, called TrueView which allows the viewer to skip ads they don't like.
Read more:
http://blogs.wsj.com/digits/2010/09/28/google-wants-to-make-online-display-ads-%E2%80%9Csexy%E2%80%9D/
Further bullet points from the presentation:
http://www.ditii.com/2010/09/28/google-on-the-future-of-display-advertising-demonstrated-youtubes-trueview-ad-format-and-more-at-iab-conference/
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