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I have to admit that I wouldn't be that offended by ads if they were done properly.
I'd be fine with text ads between chapters, with just simple text ads. Set them off with ADVERTISEMENT tags beginning and ending (much like Google's text ads).
I'd be VERY open "Thank you from our sponsors, we hope you'll consider them when purchasing" sections with ads at the end (or even beginning) of a book.
Honestly, I don't mind being targeted for advertising if the companies don't intrude on my ability to enjoy the content and allow me to skip what I'm not interested...
What bugs me with ads is their intrusiveness...on TV, greatly increased volume...mandatory ad viewing on DVDs. On the internet, popups, autoplay videos, floating boxes you can never get rid of. These are all things that actively prevent me from using the content I have come for and almost certainly assure that there is no way I will patronize the business even if I am interested in their product, all because the ad presentation is so obnoxious.
Just give me a couple of lines to read -- I'll go check out your business if I'm interested.
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