It can work, but most of it is just noise that I tend to ignore. I use an ad blocker in my web browser, and I always fast forward through commercials on my PVR. Where ads provide some genuine value to me is where they work. If I'm going to be flying soon, yeah, I want to know about a seat sale.
the practices of some advertisers, particularly online, really creep me out, though. They collect so much personal information, and track everywhere you browse (in the worst case scenario, of course). If a government body was collecting this info.. we'd be up in arms.