• by Laurie Sullivan  @lauriesullivan, July 27, 2010

Audio ads will become the next step in Google's advertising network, according to sources. The service will support the Android streaming music that Google VP of Engineering Vic Gundotra announced and previewed at Google I/O 2010 in May.

Susan Wojcicki, Google vice president of product management, wrote a blog post in February 2009 describing Google's exit from radio but plans to explore online streaming audio. "Instead we will use our technology to develop Internet-based solutions that will deliver relevant ads for online streaming audio," she wrote. "We are dedicating a team of people at Google to explore how we can best add value for advertisers, broadcasters and listeners in this emerging advertising space."

The Web-based, or cloud, version of the Android Market and the Music app will allow consumers to access their music from Android-based handsets. Some now say the application will become available in YouTube, too.

The 10-, 15-, and 30-second audio ads will support Android streaming music and YouTube videos through a streaming music channel, according to David Szetela, Clix Marketing founder, citing a DoubleClick employee. The call to action becomes the banner ad when music clips play.

Streaming music on Android and YouTube will become an instant advertising channel for Google and advertisers. The platform will attempt to compete with Apple iTunes and Pandora, but the advertising will bring in the bucks. "Google, in some sense, is like the Conde Nast of the online world," Szetela says. "All they need to do is roll out a new publication. People will buy the publication, but Google can also sell advertising in it."

Reports from the New York Post suggest Google could launch its search-related music store as early as November in time for the holidays. Apparently, Android VP Andy Rubin has been hashing out the particulars to license about 27,000 songs from New York-based Harry Fox Agency.

A Google spokesperson said the company doesn't comment on rumors.