With the dynamic growth of and increasing competition in the eBook world, prices are smaller for publishers.

What to do? What they have done in every other media venue...include ads! I have no problem with this if it will translate into more profits for the writers/authors also...

Read this informative article by
Joe Aimonetti for CNET Reviews :

The Wall Street Journal reportsthat iAds may appear in iBooks as publishers watch their profits dwindle amid technology advances like Apple's iPad. The publishing industry has been less than supportive of these advances and the result could come at the expense of its content.

From a business standpoint, though, this makes total sense. Ads have been queued and served in every other form of digital technology for as long as I can remember. Why not add them to books? With heavy competition in the e-book market, prices are dropping and with it, profits. Enter Apple's iAds.

CNET Reviews.