How Innovative UX Thinking May Solve the Inefficiencies of Display Advertising

I was asked to speak at the SFAdPub meeting about the UX challenges with advertising. The topic of the discussion aimed to address the following questions:

Do ads interfere with the UX of Websites?
Will an ad convert better if it complements or distracts from content?
Can an ad add value to a site?
Is it possible to build a better user experience around the complex struggle between grabbing attention and delivering value?