1. Open Host file
C:\Windows\System32\drivers\etc\hosts
** Open Notepad in Administrator mode and navigate to host file location.
2. Add the following lines at the end:
## Block Skype Ads
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
3. Save host file and restart Skype.