Ads on the website work well if you manage to maintain a perfect balance between the contents of the website and the ads. There are many businesses out there that generate revenue just by selling the ads on the sites. Well, a few ads on the sidebars of the site are alright, but way too many advertisements on the website can affect the ranking of your website negatively.
Too many ads on a website can reduce the value of the actual business content. Visitors will get reluctant if they find too many ads before reaching the actual content. So avoiding too many ads is better to maintain the rank on a search engine.