BusinessWeek is reporting that, according to the cliched "source familiar with the situation", Apple CES Steve Jobs thinks "mobile ads suck" in their current form (oh, hai, Google!) and intends to do for them what he did for music with iTunes and mobile with the iPhone -- revolutionize it.

The sources did not reveal specific plans at Apple but say there are several possible ad approaches. Apple could employ its user data and geo-location technology to make ads more relevant, so that a user cruising the mobile Web at lunchtime could receive an ad for specials at a nearby restaurant. It could also use the iPhone's capabilities in creative ways—say, having someone shake the device to win a rebate the same way they do to roll dice in games.

If the present belongs to Google and desktop-based web search advertising, but the future is mobile and it looks like that battle ground is going to be contested, and by Apple of all companies.

Do they have a shot?

[Thanks to the Reptile for the tip!]