I am one of those who HATES ads. However, this article makes a good case with some obvious indicators of potential success in the Twitter medium.

Twitter is a Social Medium where money is made though participation. I would characterize participation as a form of sales support, not just straight sales. As the article shows, people use Twitter for product purchase advice. The challenge will be when and how advertising fits within this natural flow of purchase decision making.

As long a Twitter does not flood the medium with ads in a way that the big media have trashd and commoditised their site products, Twitter ads could actually be better than straight banner ads.

…but that might be damning the idea with faint praise.