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If the IP address of the requester falls into the desired geographic location and the IP address was not yet served, then it will be redirected to the bad site. This site can then either use one of the well known Web attacking toolkits to exploit a vulnerability in the visitor's browser, or it could try to annoy the user with persistent pop-ups and social engineering tricks to get the user to install a misleading application or Trojan. Rogue antispyware tools seem to be a very popular thing that are pushed out using these methods at the moment. The malicious ads are not a new phenomenon. In 2006 a popular social networking site was hit by a big wave and several other big names followed. Symantec Security Response Weblog: Ban Bad Banner Ads
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