Here's how advertising works from its creator's point of view. There are a few principles abstract enough that you can apply to any piece of advertising. Good advertising positions itself within a market, develops a brand image, establishes its product as a good product (not even necessarily better-than: as long as you look trustworthy and people know your name, you'll sell). The bulk of ad research, meanwhile, goes into studying individual forms. TV ads. Product placement in films. Radio spots. Magazine spots. There's a series of long-tested techniques which advertisers rely on. Even these techniques usually fail, because plenty of advertisers are fucking idiots who don't get that ads are a creative medium, and if you're formulaic rather than creative, you'll sell jack shit.
The challenge of the Internet is that every web site has its own unique form. Most of these forms weren't even designed for ads (Facebook at least knew how they wanted to sell ads; Twitter still has no clue). To sell on Twitter is different from selling on Facebook is different from selling on Reddit or Tumblr or Pinterest or Instagram. There's no formula. And some of these sites are so limited that advertisers simply have no clue how to push their shitty little message out to suckers, ahem, consumers.
The fix, of course, is that instead of selling a brand you start interesting conversations, create dialogues that engage people with the thing you're selling, even start communities of people who revolve around your product. But advertisers aren't bright enough or genuine enough or ambitious enough to do this the right way. Community-building especially: nobody wants to join a forum for a product that isn't a car. Yet some people persist in thinking that if they build it, fans will come.
One future of advertising looks like the Deck Network, where people so trust the advertisers that they'll click on the ads willingly. One's the model Facebook is still struggling with: connect super-small businesses with precisely the people who want to buy their product. These anti-Facebook ads stories recently only show that you have to be smarter advertising on Facebook than you'd have to be in a newspaper. The really good Facebook ads get friends talking about them, because they really are something that those people enjoy. But that runs counter to how advertisers think about their sheep, goddammit I mean targets, no wait that doesn't sound nice either.
The real bubble is: stop treating people like products, start treating them like people. That means fewer start-ups designed to sucker people into wanting some bullshit connection they never really needed (YC has some exactly like this), fewer advertisers looking down at the masses like they're ripe for the picking, fewer businesses geared toward herding people up and selling them wholesale. The more freedom you give people w/r/t how they consume media and how they express themselves, the harder it is to trap them in your crap. Ultimately it becomes more profitable to just treat them like human beings, and act like a human yourself. But plenty of products will die when this happens because plenty of products were never intended for human consumption in the first place.