Microsoft has tapped New York City-based TargetSpot to deliver in-stream audio ads for its cloud-based Xbox Music digital music streaming service, which is available on Xbox 360 consoles, Windows RT tablets and PCs and Windows 8 tablets and smartphones.

TargetSpot says it will serve audio ads across all Windows 8 and Windows RT devices where the Xbox Music free streaming service is available – currently in 15 countries – and thus provide a “comprehensive monetization solution” for Microsoft’s music content.

For your background: Microsoft limits free streaming to 10 hours per month after the first 6 months of usage.

Paying subscribers cough up $9.99 per month or $99.99 per year for the Xbox Music Pass, but a one-month trial offer is available.

The Xbox Music catalogue is about 18 million songs strong.

By leveraging TargetSpot’s ad insertion technology, the ads Microsoft will be serving will supposedly be highly targeted and relevant to listeners.

With the addition of Xbox Music, TargetSpot’s Internet radio ad network now includes more than 85 radio groups and pure-play online music providers, the company says in a statement.

This includes players like CBS Radio, AOL Radio, Last.fm, Yahoo! Music, Grooveshark, Myspace Music, Playlist.com and more.

Also read:

Nokia launches its Music+ subscription service on Windows 8 and Windows RT

Rhapsody updated for Windows Phone 8 with better audio quality, offline playback and more

Fresh from the rumor mill: Microsoft is in talks to acquire music startup Rdio

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