No - no embedded ads on the book. Advertisers would have no method of gauging the effectiveness of an ad. The only "ad" in the book would be a title page, header, footer, end page, etc. which prominently displayed the authors' / publisher's site URL, or graphic/logo for the site. Things such as "Did you like this book? Read an excerpt from Book 2 on
www...com. Read the author's blog on how he developed the character, and download more books..."
The site itself would contain the ads, much as MobileRead (or any forum, for that matter) does now.