There's a very interesting article on Mediapost about how the recent partnership of XM Satellite Radio and Google/dMarc will help pave the way for the next generation advertising model by 2010. They bring up the recent forming of e-Media Exchange - an automated ad auction system created by Toyota, Wal-Mart, Microsoft, Hewlett-Packard, and Home Depot. These disgrunted advertisers are fed up with the current, and highly subjective, advertising system and are working to create an automated and self-regulating system based on the auction model.

The even more interesting scenario brought up is the ability for XM to provide extremely targeted advertising to their subscribers. Since XM Satellite Radio is subscriber-based (yes, SIRIUS is too), they have a large amount of your demographic information.

Associate that information with data about what kind of car you're driving (which can indicate your socioeconomic status), along with GPS data of your location (which can provide geotargeted metrics) and advertisers can provide a highly relavent message directly to a micro-defined segment.

This is all just theoretical of course, but plausable? Absolutely.

It's a great article, definitely worth the read.

[Mediapost]