I think by now we all know that just because a new channel for advertising enters the market then its means that its going to kill off another. TV didn't kill off radio and the internet isn't going to be the death of newspapers. Here's a fun 'case study' I found on the Digital Buzz Blog.
Cute little snails with LEDs attached to them employed to advertise BPAY. Nice microsite too - http://www.awesometimewasting.com.au/.
An entertaining little viral video for Samsung LEDs.