Apple is expected to unveil its long awaited music streaming service next week, with potential advertisers having reportedly been sounded out.
The product, thought to be called iRadio, will take on Google and United States-based Pandora Media in the mobile music space.
Reuters reports Apple will use its iAd mobile network to sell advertising space, but no deals have been signed for banner adverts to appear on the platform.
Google has already launched its streaming service, Google Play Music All Access, which costs users US$9.99 a month, the same cost as Spotify.
Around 48 per cent of smartphone users listen to music on their handset and manufacturers see it as a vital service to strengthen brand loyalty.