The ads themself are completely static with no sound, no movement, and no tracking. Just static images served from the same server as our other content. From what I've seen a lot of medium size sites are this way. The small ones just slap google adwords on their site and are done. The large ones have all kinds of scary tracking stuff but many of the medium size sites actually have a salesman that sells individual ads, creates the ads, etc.. just like old school dead tree magazines.
Your site's ads may be static, but because you need to divert your user's attention away from your content to the ads, the ads will tend to use colours and layouts that catch the eye, which will annoy those not currently interested in buying the advertised product, those who don't want such desire to be enflamed, or those currently concentrating on your content (which may be about different topic, or may be giving more independent advice about the product category than the ads).
Plus compared to advertising sold by a 3rd-party exchange, selling yourself to advertisers creates a greater potential for advertiser influence over your content.