Apple plans offering more advertising to users via apps
Users of iPhone apps such as Maps and Podcasts could potentially see more advertising in the future, with a report claiming it is planning to step up its ad business considerably.
Some of Apple's services, such as the App Store, News, and Stocks, serve advertising to users alongside content. While other apps like Maps have so far avoided an advertising push, it is claimed Apple is working on doing just that.
In Sunday's "Power On" newsletter for Bloomberg, Mark Gurman claims Apple's advertising teams "gained a foothold" within the Services business earlier in 2022. Todd Teresi, who previously reported to Eddy Cue during the time of the iAd network, started to report to Cue once again.
Teresi is said to have discussed expanding the ad arm, increasing its $4 billion in annual revenue to double digits. To accomplish that goal, more advertising will have to be served to users.
There was also mention of the advertising business during an earnings call, but despite some headwinds, it was seen as a positive for the company. This was apparently an indicator to Gurman that there was interest within the company on the matter.
Gurman believes that there will be more ads in digital storefronts, such as Books and Podcasts, with more advertising included within TV+ as well. An expansion of search ads to Apple Maps is also thought to be a possibility, and has also reportedly been explored internally.
While Apple could bolster its ad revenue with more ads, it still has to do so while maintaining privacy to consumers. It already benefits from its App Store search ads despite most of the search volume stemming from devices with first-party data collection turned off.
In July, Apple confirmed it was trialling new ad slots in the App Store, including a placement on App Store Today and the "You Might Also Like" section.
Read on AppleInsider
Some of Apple's services, such as the App Store, News, and Stocks, serve advertising to users alongside content. While other apps like Maps have so far avoided an advertising push, it is claimed Apple is working on doing just that.
In Sunday's "Power On" newsletter for Bloomberg, Mark Gurman claims Apple's advertising teams "gained a foothold" within the Services business earlier in 2022. Todd Teresi, who previously reported to Eddy Cue during the time of the iAd network, started to report to Cue once again.
Teresi is said to have discussed expanding the ad arm, increasing its $4 billion in annual revenue to double digits. To accomplish that goal, more advertising will have to be served to users.
There was also mention of the advertising business during an earnings call, but despite some headwinds, it was seen as a positive for the company. This was apparently an indicator to Gurman that there was interest within the company on the matter.
Gurman believes that there will be more ads in digital storefronts, such as Books and Podcasts, with more advertising included within TV+ as well. An expansion of search ads to Apple Maps is also thought to be a possibility, and has also reportedly been explored internally.
While Apple could bolster its ad revenue with more ads, it still has to do so while maintaining privacy to consumers. It already benefits from its App Store search ads despite most of the search volume stemming from devices with first-party data collection turned off.
In July, Apple confirmed it was trialling new ad slots in the App Store, including a placement on App Store Today and the "You Might Also Like" section.
Read on AppleInsider
Comments
Here comes Apple.
Noooo…
Step 2. Oh wait, we are leaving billions on the table, let’s ramp up our ad business
Step 3. Profit
Can anyone show me what an ad in News or Stocks looks like?
It's no different than me getting bugged all the time to purchase more iCloud space, whenever it runs low on one of my Apple devices. Or walking into a McDonalds and seeing big posters on their special deal to "super size" your meal. Or while watching a TV show, seeing a 15 seconds blurb during a commercial break, reminding you to stay tune for a new episode of The Simpsons coming up next.
Now if you are getting bugged to subscribe to Spotify (or me getting bugged to purchase more One Drive space), while using an Apple app on an Apple device, then that's an "ad". Apple is charging and making money from placing those "ads" in their Apple apps. When you do a Google search and there are links that has the word "AD" in bold text and in front of it, those are links to "ads", that Google is getting paid for placing in your search results.
On the other hand, I think Apple should foreswear ad revenue as a significant revenue source. I believe Tim Cook when he expresses his commitment to not making Apple a privacy violation company like Google and Facebook. But, Tim Cook won't be at the helm forever, and he can't guarantee that the next CEO, or the next CEO after that won't forsake user privacy for revenue. What he can do is try to bake it into the culture at Apple that they aren't an advertising company, and the only way to do that is to very firmly put the brakes on now and steer the company forcefully in the opposite direction, to the point where it would be very difficult to turn back.
Just like with government, depending on having the "best" people running companies doesn't guarantee freedom (from surveillance in this case). What guarantees freedom in both cases are institutions and culture that minimize the harm to freedom that "bad" leaders are able to cause.
Sophistry, however, only appears to work one way.