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Why do instances not run ads?
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Why should it be ads?
There are so many different ways to have some form of monetization that is not intrusive.
Running Ads is not the only way to keep the lights on.
Just curious, what are some? I've no experience hosting any sort of website or anything. I assumed ads were pretty much the best bet?
On that note I highly suggest you read EFF's "To save the News" articles, where they also go over why targeted ads don't work. It's a great read
https://www.eff.org/deeplinks/2023/05/save-news-we-must-ban-surveillance-advertising
Ads pretty much are the best bet.
That said, they aren't the only option. Donations are a big alternative. That's why Wikipedia is ad free, for example. The other big one is subscriptions, but you basically have to offer a lot to convince anyone to subscribe. And a lot of "subscriptions" are actually just a convenient way to donate, which should be viewed differently from non-donations, since far fewer people are willing to donate, due to being completely optional.
There's also sponsored content, but that's just deceptive ads. I'd rather ads be 100% transparent and obvious about being an ad.
Finally there's angel investors, but those aren't typically paying out of the goodness of their heart. They usually want to grow a business that they'll later commercialize. They'll get a great period of time where everything just magically gets paid for, but odds are, they're gonna do something terrible later to monetize.
An obligatory mention that ads don't have to be scummy. That's the norm, yeah, but it's entirely possible to serve only ethical, clearly marked ads that don't utilize deception or are scams. It doesn't make as much money as accepting scummy ads, which is why we usually end up with ads being scummy, but it is an option.
ads are shit. They make everything smelly and gross, and it has to be scrubbed.
Wikipedia gets a lot of funding from billionaires and corporations. It's not going to be easy for most instances to be funded entirely by user donations long term.
https://en.wikipedia.org/wiki/Wikimedia_Foundation#Wikimedia_Endowment
edit: removed "most"
I have contributed money repeatedly to Wikipedia and will continue to do so (I have no interest in editing). I'm not rich.
If you want to really measure the support for Wikipedia, you have to include the editing. That's hard to measure in dollars but I'm sure it dwarfs the 'billionaire' contributions.