Paul Graham : Let's Fix Advertising

Paul Graham, Mr Y Combinator, has posted 30 big areas that he thinks need improvement and has challenged the world's engineers and entrepreneurs to come up with the answers.  One is simply entitled 'Fix Advertising'.  Graham is super-smart and a serious innovator so his take on the issue is well worth a read: "Advertising could be made much better if it tried to please its audience, instead of treating them like victims who deserve x amount of abuse in return for whatever free site they're getting.  It doesn't work anyway; audiences learn to tune out boring ads, no matter how loud they shout.  What we have now is basically print and TV advertising translated to the web.  The right answer will probably look very different. It might not even seem like advertising, by current standards.  So the way to approach this problem is probably to start over from scratch: to think what the goal of advertising is, and ask how to do that using the new ingredients technology gives us.  Probably the new answers exist already, in some early form that will only later be recognized as the replacement for traditional advertising.  Bonus points if you can invent new forms of advertising whose effects are measurable, above all in sales."  Any ideas...?  This might be a starting point.