Recent events have cast a spotlight on LJ's ad practices. As you know, LJ uses Google Adsense and other third-party ad-serving companies to put up ads. It would probably be costly for LJ to run its own advertisement department and directly accept ads from sponsors, as the kind of content which runs on LJ is so various (also, aren't a lot of the heavy traffic comms/LJs paid, and thus not available for running ads anyhow?).
LJ has
a page directed at potential advertisers. On the page, they explain that in 2009 "Livejournal is relaunching its brand and service." What this means, I am not sure. Apparently, LJ has "Leading Edge Media & Advertising Models," (uh... really?) and soon there will be additional services for paid subscribers, as well as the "introduction of search and discovery." I wonder what this is? The page stresses the community features of LJ, rather than the individual journals, as well. Probably because "a bunch of people writing about their daily lives and what they had for breakfast" doesn't sound like something you can sell ads for easily.
Under "Media and Advertising Opportunities," LJ has listed "Display – Flash, Rich Media, IAB Standard, Email inserts." What does Rich Media mean? Ads that make noise? Or do they mean hosting the advertiser's site, and allowing them to host pictures or videos/audio? I wonder if the sponsored communities etc worked very well at all?
I also don't see why they don't use more unobstrusive advertising like WP.com. On the other hand, maybe that's because WP.com can afford it, as they make a lot of money off of consulting and hosting major enterprise blogs. Also their prices are a lot higher than LJ's for individual add ons:
see here. Interesting to see that now Wordpress.com does allow an unlimited number of people to access your private blog, albeit for $30 a year. Getting rid of ads is $30 a year.