As VentureBeat pointed out yesterday, Pandora has added advertising to its popular iPhone application. VentureBeat called the ads "unobtrusive" and described them as "simple overlays that reside right above the main navigation." Best Buy and Beck's beer are on board, and Pandora founder Tim Westergren told VentureBeat due to the unexpected level of the application's popularity he expects all advertising inventory to be taken soon.

Pandora, which had publicly fretted about royalty rates, is probably breathing easier after today's announcement of an agreement on Internet royalties between all the major parties.

For more on Pandora, watch the interview with Westergren at this April 2007 post at iinnovate.