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Since you got some negative feedback here, I want to keep it cool:
If you only want to show ads on YOUR system/instance, I think you can go on and do that. Your users can decide if they are fine with using a service that is monetizing via ads. Just make it clear to potential users BEFORE they sign up.
If you start federating your ads to other instances on the Fediverse, you will be banned pretty quickly, so do NOT do this.
Maybe think about a mixed approach of donations and ads, so users could work actively against being flooded with more and more ads.
Hi there!
Since you got some negative feedback here, I want to keep it cool: