As a 100% layman, I spent 20 mins thinking about the ad issue. The easiest way out I can find is to have some kind of location-based ad system to increase the degree of connection between a user and the ad content. Is it feasible technically and commercially? I would like to learn more. Thanks.
That's already being done; in mobile based on your GPS/cell location and otherwise based on your IP (not very specific, but a general location work pretty well).
Yes, I know. But most of the time we see ads on bigger screens. The location-based ads have way less location awareness in my experience. I guess, besides the ads from your neighbours (location aware ads), there should be some kind of quicker balance feedback between ad bidding system and what user really pays attention to. Just think about the ads we see in the paper-media-only age, different ads occupied different places. Online ads have not reached that point yet. I wish we could get to that point earlier to make more quality content makers' life easier sooner.
Working for a UK-based division where our corporate Internet gateway ingress/egress is in San Jose, things do get confusing - for example, when I browse ebay.co.uk, (in my lunch hour, of course!) without logging in, the postage charges are astronomical as ebay assumes the UK sellers have to ship to California.