Here's a great article that talks about all the benefits of reading to your child...reading to them even if you don't think they can understand what's going on in the book yet. I've also included my favorite excerpts below...
Believe it or not, by the time babies reach their first birthday they will have learned all the sounds needed to speak their native language. The more stories you read aloud, the more words your child will be exposed to and the better he or she will be able to talk. Hearing words helps to build a rich network of words in a baby's brain. Kids whose parents frequently talk/read to them know more words by age 2 than children who have not been read to. And kids who are read to during their early years are more likely to learn to read at the right time.
But perhaps the most important reason to read aloud is that it makes a connection between the things your baby loves the most — your voice and closeness to you — and books. Spending time reading to your baby shows that reading is a skill worth learning.
Try to set aside time to read every day — perhaps before naptime and bedtime. In addition to the pleasure that cuddling your baby before bed gives both of you, you'll also be making life easier by establishing a routine. This will help to calm your baby and set expectations about when it's time to sleep.
Cuddling while you read helps your baby feel safe, warm, and connected to you.