I think the whole advertising situation will get better once the tech bubble bursts. Just look at many of the tech companies now - they are giant advertising platforms, but spend most of their revenues and investor money on user acquisition through advertising. This is like a giant ponzi scheme really.
Google worked, and will probably keep working for some time now, because one of the main use cases for search is to find stuff you want to buy. When you go to the site and start searching for a particular product, it isn't a big deal (and sometimes is useful) when ads come up for that product or equivalents you might not have heard off. The advertising has actual value in informing you about what is available. Other sites, such as Facebook, might have more information on me, but I go there to look at pictures of my friend's dogs and kids, not when I want to find something to buy. For that reason I find their ads incredibly annoying, and despite Zuckerberg going on about how they make them relevant, he would only be true if I was some kind of consumption machine that wonders around the internet like a virtual godzilla eating up every product that is shoved in my face.
My prediction is that eventually the industry will fall apart as companies realise the ponzi nature of current advertising prices, and that much of this expenditure is not converting in to sales. In that regard, the better tracking/conversion tools that the internet allows may be the industries own downfall.