Here are some of our thoughts…

Application owners, just like Facebook and MySpace themselves, need to think beyond the banner ad. In social networks, ads need to “become part of the conversation” (the new social media cliche). The line between content and ad needs to blur, or vaporize altogether. Ads need to become personal, social, and dynamic. And ads need to provide immediate value to the consumer, either in the form of utility or entertainment. Yes, ads must work harder in social networks to be accepted by this incredibly discerning audience.

Here is more on the topic: http://blog.splashcastmedia.com/2008/04/23/yes-banner-ads-also-suck-on-application-pages/