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Yahoo has shut down its Ads in RSS service, which enabled website owners and bloggers to insert contextual advertising into syndicated content, while still getting a piece of the action thanks to a revenue-sharing program.

Here is the e-mail that Yahoo sent out to publishers:

Dear Yahoo! publishing partner,

We wanted to let you know that we are closing our Ads in RSS program effective February 2, 2009. We have ended this beta program to focus on other more broadly used ad products for our publishing partners, such as Sponsored Search and Content Match. We recommend that you remove current Content Match tags from your RSS pages.

Please be assured that we continue to invest in both our Sponsored Search and Content Match products and are excited about many upcoming improvements for 2009. We appreciate our relationship with you and look forward to working with you to grow our business together.

Sincerely,

Your partners at Yahoo!

Yahoo is still referring to Ads in RSS as being in beta, but they actually launched the service back in November of 2005.

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