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And have destroyed the ad-supported type. The ad-based print industries are dying. Magazine subscriptions & counter sales are shrinking, and advertising support for them is plummeting. There are increases in advertisements: in videos for online magazines. (Note that online mags with videos have found a substantial place in the market while "enhanced ebooks" have not. People don't want videos interrupting their novels.)
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The first link you cite says that ad revenues at the CONDE NAST group of magazines plummetted in January 2011, not that ad revenues plummetted at magazines in general; the second link referred only to ad revenues at NEWSPAPERS. It is not really news that print media in general, and newspapers in particular , are having a hard time adjusting to technological change: that doesn't mean that the ad-supported model is going to vanish.
Again, the ad-supported model appears to work well for games and apps . I understandthat theremaybe sonme technical difficulties to transfer the model to ebooks, but even you concede the obstacles aren't insurmountable.
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If they're underlined (or worse, highlighted), people will find an app to strip the underlining. Extra markup on the text counts as "extreme nuisance" for most readers. A lot of us strip out the underlining text on blogs that use keyword ads. If the code is hard to strip, people will just not buy those ebooks. It's *incredibly* disruptive to the reading process. Gmail's text ads are *not in the middle of the text
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IF you are an ad hater, they're incredibly disruptive, and so you avoid them by buying the full price version. If you are ad-tolerant, they're not so disruptive. Once again, all ebook buyers aren't you. Historically, and even in the present day, people have enjoyed fiction in settings where there are a lot more than one text ad per page.
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Adverts don't need a "silver bullet," but they do need a way to convince advertisers that they're getting their money's worth. If the goal is to take a $12 ebook and sell it to customers for $6, and convince advertisers to pay the other $6, those advertisers will have to believe they'll be getting more than $6 in return somehow.
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I spoke in terms of of a $1-3 subsidy, not a $6 subsidy. In any case, this is
the nub. Is it worth it to advertisers .According to Adner and Vincent in the WSJ, it will be.
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But the lack of ads in paper books isn't because book-reading is sacred, Ron Adner and William Vincent argue. Companies don't advertise in books because there is no guarantee of when or whether the book will sell. That's all changing, they say:
In short, physical books can't compete with other print media for advertisers. Digital books can. With an integrated system, an advertiser or publisher can place ads across multiple titles to generate a sufficient volume. Timeliness is also possible, since digital readers require users to log in to a central system periodically.
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You can also tailor the ads to a reader's online purchasing history as well. The combination makes ebook ads a lot more attractive to an advertiser.