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Here are some useful articles about Ad Supported Digital Magazines:

Real word article on digital magazines from eMedia Vitals :
New life – and revenue opportunities – for digital magazines


Folio has done special sections for the past few years on digital magazines. A ton of great content in each one: 

Folio magazine: Digital magazine special section 2008   
                              Digital magazine special section 2009

Folio magazine: Digital magazines
“All-Digital MagazinesNew Opportunity or Last Hurrah?”

Industry legend Bob Sacks comments on the inevitability of digital magazines in Publishing Executive magazine:
"The Profit Prophet The Real Viability of Digital Editions"

From FIPP. In some ways the Europeans are ahead of us:
Zinio’s top 10 tips before entering the world of digital magazines

From FIPP: Peter Meirs, director of alternative media technologies at Time Inc, reviews developments in digital technology and finds magazines still have a chance to get it right first time:
http://www.fipp.com/Default.aspx?PageIndex=2002&ItemId=12334

From MPA write up from their recent “Meet the innovators” conference speaking on:
“MONETIZING THE NEW DIGITAL MAGAZINE” 

From MPA: (He talks about digital editions):
The Four Questions-Dan Sullivan, Nickelodeon Magazine Group

For some scary perspective:
Top Online Publishers Ranked By Average Monthly Unique Visits


Josh Gordon's Smarter Media Sales