iRadio will have a trump card and it will be raking in the cash. For those who are not familiar with iRadio, it is the new music streaming feature on iOS 7. And a recent report shows how the adverts will run on iRadio. It is set to make money and how much Apple is forking out to pay the music labels is unknown.

Radio ads generally serve better and result in more money being made. Currently Apple receives 30% where any of the iAds are displayed, but with iRadio Apple will keep 90%. That is a huge percentage, but the 10% is more than some give the music publishers. Advertisers are also more likely to prefer using Apple as a platform as Apple will be able to geolocate a particular user’s location and target them for adverts. You could be walking past a Chinese restaurant while listening to iRadio and have an advert for the restaurant play, for example.

Ads will also be able to be targeted to a user’s specific media taste, this will be determined by the apps, music, games and movies that users have downloaded from iTunes.

Depending on your music taste, iTunes can stream you music which if you like you can purchase it with the tap of a screen.

[Source: Cult of Mac]