According to a new report, Apple plans to drive more ad revenue across several iPhone and iPad apps by expanding the reach of ads in the App Store and in Apple Maps, Apple Books and more.
In his latest Power On newsletter, Bloomberg’s Mark Gurman stated that Apple will significantly expand its advertising business over time. The trusted analyst believes the tech giant Cupertino will bring search ads to Apple Maps, as reportedly has already been researched. It would allow companies to pay to appear more prominently in search results.
Apple Books and Apple Podcasts can also get the ad treatment, which makes publishers pay to make their work appear more in searches and across the app. The use of in-app ads is nothing new, as users are already seeing display ads in the Apple News and Stock apps, with the early publishers giving a portion of the ad revenue.
Not to mention the App Store. Here, apps for iPhone, iPad, and Mac are promoted as developers pay to show their apps more prominently. The question is, if Apple has already seen advertising around its suite of apps, why should it expand? As Gurman points out, it has to do with a big sales hit across businesses of all kinds, and Apple looking to boost its ad revenue to the (billion dollar) double digits.
App Tracking is Apple’s undo
Last year, Apple introduced App Tracking Transparency, which allows iPhone and iPad to block ad tracking in other companies’ apps and websites. It is a privacy feature that allows users to opt out of the collection of their data by various apps, which is a hit with users. In fact, Gurman states that 78% of iOS 15 users have disabled ad personalization. (By the way, here’s how to find out which apps are tracking you on your iPhone.)
However, you can still be tracked in Apple’s apps. As the report points out, the app tracking feature “doesn’t track you in apps and websites owned by other companies,” Apple states. Still, ad revenue is a big commitment that Apple wants to pursue, and some sort of restructuring is underway. Vice President of Advertising Platforms Todd Teresi reports again to Eddy Cue, head of Apple Services, while Teresi previously reported to Cue before 2016, when iAd was a thing (a now-discontinued mobile ad platform).
Teresi aims to increase ad revenue from $4 billion annually to something in the double digits, hence the increase in ads on iPhone and iPad. In an earnings call, CEO Tim Cook called the state of its advertising business still “great,” but there are many pain points Apple needs to resolve to increase its ad revenue without disrupting customers.
The good news is that Gurman doesn’t expect Apple to put ads in third-party apps anytime soon, but more ads are on the way. Is it fair to put ads in apps on an iPhone that cost around $1,000? Let us know your opinion about Twitter and Facebook.
We may not see this transition anytime soon, but we may see the iPhone 14 lineup as early as September, and it looks like the Pro models will get a $100 price increase.