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As a blogger, I find it insane that subscribers would expect an ad-free RSS feed. The concept of free AND ad-free web content will probably remain utopian. It just isn't possible to sustain it.
For blogs monetized by AdSense and driven by search traffic, subscribers don't really matter, and I have a feeling I am not alone ;)
I agree with what you are saying, the ad on feeds can be a good thing, but I also agree, that it is maybe stopping some people visiting your blog to see it, just reading your posts via feeds, which is definately not a good thing, I have yet to implement this, but I am unsure whether I actually want to or not.
There seems nothing wrong in having ADs in the feeds.
I still have a very low number of subscribers, so I dont plan to insert ADs in my feed.
Now, ADs in feed, could possibly trigger one another type of subscribing promotion saying:
""Get the AD Free content delivered to you FREE !! "
How does that sound?
@ Craig : Thanks for subscribing to my blog. Well, it really depends on how you see things, lemme give you two examples -
1. You have already subscribed and took your time to visit my blog and then leave a comment on it. - This is true in your case. So, it's good as it shows the community effect.
2. You may have subscribed the blog but don't leave comments and read it through feed reader. Well, there are various other ways through which a person can leverage the subscribers, even though they just read the blog through feeds and how to do that will be my next blog post :) And I have to say that your blog looks pretty cute too.
@ Aravind : Well, as I mentioned in the reply to sumesh that I'm sure most of the publishers won't mind it however, many readers may get irritated because of it. Well, the line "Get The Ad Free content delivered to you Free" doesn't sound good as a publisher or writer. However, you show the ads in web pages anyway :)