I've maintained for a long time that the ad networks themselves are the problem, not advertising as a whole. There is a place for video advertising (around content that is also video), there is a place for audio advertising (on the radio, around podcasts, on music services), and there is even a place for animated, interactive advertisements, on sites that are expected to dance and move anyway, like online games.
The trouble is, most third party networks are so laser focused on getting people to "interact" with their advertising that they've skewed the game in favor of distracting users from the content they arrived to consume. They're so focused on targeted advertising that they regularly invade users privacy, utilize questionable data collection practices, and break down security barriers when browsers try to shut down their violations of user trust. It's no wonder ad blockers are on the rise, because the existing ad networks are all untrustworthy.
There will always be a place for advertising when it's done properly. Watch an NFL broadcast and observe the product placement, the logos and sponsors everywhere. It's organic, integrated into the very fiber of the broadcast in a way that couldn't be blocked with even the most sophisticated blocking software. And it's also usually quite tasteful, there to promote the product, but not distracting enough to detract from the game the viewers came to the channel to watch.
This kind of advertising, organic product placement and sponsorships, where the content creator and the advertiser have a real partnership and coordinate their efforts, this is the kind of advertising I want to see more of. For all the drama they tend to draw, I commend the Gawker sites (Gizmodo is particularly good about this) for their Sponsored posts and their frequent "Deal of the Day" posts, which are first-party advertising that my blocker regularly fails to block. And you know what? Some of the deals are genuinely interesting to me, because Gizmodo clearly knows their audience, and selects advertising partners that make sense on their blogs. More of that please!