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With all due respect, I do not see an ad model for e-books as viable as long as the ads are embedded in the books. The money are not there for that.
I bought quite a few ebooks, mostly magazines like Aeon, Asimov's, SFF, but also author collections of short stories, which have quite a few ads in them, and actually some of those adds made me buy more ebooks since they were ads for some of these collections by authors appearing in the respective issue, or by similar authors. But the market for such is quite limited and incidentally all those ebooks were not free, reasonably priced with no drm yes, but not free.
Wovio is just a publicity stunt in my opinion and is going to stay limited at a few titles here and there, but as a model for large scale ebook selling I think it is DOA.
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