Here's a Wall Street Journal article that discusses the issue.
Quote:
One digital-book store, Wowio Inc., is making inroads selling ads in the e-books users download from its site onto, say, laptops or e-readers like Apple's iPad and Amazon's Kindle. Some Wowio e-books have three pages with promotions: an introduction and a closing page each with an ad, plus another full-page ad. The company also is experimenting with techniques to insert ads between chapters and to target ads using profile information that users submit to its website, says Wowio Chief Executive Brian Altounian.
The movie site Fandango is among the Los Angeles company's clients. Fandango is giving Jonathan Swift's "Gulliver's Travels," with three pages of Fandango promotions, to people who buy tickets on the site to the Jack Black movie "Gulliver's Travels," which opens on Christmas.
"It is not the kind of thing where you are reading and a video pops up on the screen," Mr. Altounian says. "If advertising gives access to content that is free or heavily subsidized, then most readers will accept it."
Wowio charges advertisers between $1 and $3 for each book downloaded and shares revenue with the publisher. The publisher determines how much of those ad dollars trickle down to the author.
Read more: http://online.wsj.com/article/SB1000...#ixzz1bj6EFGrV
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