Is Social Ad the next generation of online advertising?

As Facebook, Twitter and other social media sites entered our lives, something has changed. Seth Goldstein (Co-Founder of SocialMedia.com) is convinced that Social ads became Ads 2.0.

This presents advertisers with a huge challenge, but also an opportunity to engage online audiences in new and compelling ways. Transparency, responsiveness, genuine dialogue, and ethics take center stage in the battle for revenue.

Seth Goldstein`s presentation from 2010 IAB Annual Leadership Meeting can be seen on SlideShare.

Are contextual ads part of display advertising?

Contextual ads are closer to display ads that to search ads. Forrester Research decided
to break down status quo and removed contextual ads from the search bucket.
Here is the reason, why they did it:

I would add one other reason.
Role of contextual ad is to back up the search process. Provide more information about a product or service.
Contextual ads are often more branding type of advertising, than direct response advertising.
This is the reason they are closer to display advertising.

Contextual ads should have 26% share from display advertising in 2010.
Here is the Forrester`s forecast from 2009 till 2014.

Forrester`s – US Interactive Marketing Forecast, 2009 to 2014 can be found here.