In case you were wondering whether or not the ads would be audio ads or traditional app-like iAds, AdAge says both:
The audio ads will be sold via iAd, Apple’s mobile ad network, according to a former Apple executive with knowledge of the situation. In addition to audio ads, the streaming music service will also contain the mobile ads iAd currently sells.
The aim of the ad-supported service, which according to the report’s sources will not include the ability to search or play specific songs on-demand, is to drive song downloads to iTunes.
The report adds that a spokesperson for Sony/ATV Music Publishing, the one major publisher that reportedly hasn’t made deal with Apple yet, said the company “is optimistic it will sign a deal with Apple soon.”
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Apple is largely expected to introduce its iRadio service at next week’s WWDC developer conference.