How to Block Advertisements in Skype

Method 1: Block root advertisement app source via Internet Explorer
Step 1: Head to the Control Panel and click on Internet Options. 

Step 2: Click on the Security tab and select the Restricted Sites icon.

Step 3: Press the Sites button and type https://apps.skype.com in the text box, then press Add ==> OK

Method 2: Block Ads via config.xml file

Step 1 : Press Windows+R and type %appdata % go to \Skype\[your Skype username]. 

Step 2: You should see a config.xml file in this directory. Right-click it and choose Edit, then Ctrl+F to find the line that says <AdvertPlaceholder> and delete the entire line. Make sure to save your changes to the file before exiting.

Method 3: Block ad servers via Hosts file in Windows (warning: a bit technical)

Step1. Press Windows+R and type C:\Windows\System32\drivers\etc\hosts

Step 2. Add the lines below:

127.0.0.1 rad.msn.com

127.0.0.1 live.rads.msn.com
127.0.0.1 ads1.msn.com
127.0.0.1 static.2mdn.net
127.0.0.1 g.msn.com
127.0.0.1 a.ads2.msads.net
127.0.0.1 b.ads2.msads.net
127.0.0.1 ac3.msn.com

Step 3. Save and restart your Skype app.

Done!