Apple’s ad network is making waves.
Normally known for consumer products, Apple is putting higher emphasis on prioritizing its services category, that includes search advertisements in the App Store.
Providers are now Apple’s second-highest revenue generator, and this post takes a look at how it arrived and what it suggests for marketers.
How Apple Advertisement Network Suits Today’s Search Market
While Apple revealed its expansion of available ad formats and stock in the App Shop, that’s not the only method it increased its income.
Relating to the search market, Google and Amazon are usually leading of mind. However, both corporations have actually dealt with public examination from the federal government and customers.
Google has made headings this year dealing with antitrust fights in both the United States and the European Union.
Not only that, but the extreme fines that accompanied the antitrust rulings have led Google to lose some of its market share.
Amazon hasn’t had the most impressive press, either. Some of the newsworthy class action suits that hurt Amazon consisted of:
- $1 billion antitrust case in the UK
- California antitrust lawsuit
- Incorrect marketing around Prime Day
- Stealing pointers from shipment motorists
- Wage theft
With both Google and Amazon under examination, this opens up an opportunity for Apple to take a seat at the search table.
Principal analyst Andrew Lipsman from Insider Intelligence mentioned:
“I can easily picture a circumstance in which Apple gets 10% of Google’s nearly $150 billion search advertisement business, which would equate to a $15 billion opportunity.”
Breaking Down Apple’s Solutions Category Income
Apple’s services category within its thriving ad network includes the following:
- Advertising profits from the App Store
- Streaming services
Some products that fall under the services category include Apple Arcade, TELEVISION+, Music, and Fitness+.
Not surprisingly, most of Apple’s $19.6 billion advertisement income came from App Store advertisements in 2022.
Following suit from other leading online streaming services like Netflix and Hulu, Apple TV+ will likely start supporting television advertisement buys on its network. While this is not verified, many have actually speculated that Apple remains in the initial preparation stages of a television ad product.
Challenges Still Loom For Apple’s Ad Network
Legal fights around customer privacy and competitors are not immune to Apple.
In efforts to secure customer personal privacy, Apple introduced its App Tracking Transparency (ATT) in 2021, badly hindering marketing attribution efforts on other platforms.
However, in November 2022, Apple submitted a brand-new class action lawsuit against themselves, declaring that they continue to track customers even after disabling tracking in their device settings. Because of this, the claim specifies that Apple’s pledges surrounding user privacy are “entirely false.”
On the other side, competitors such as Meta have seen a significant influence on marketer earnings as a direct outcome of ATT.
Combining the death of Apple’s IDFA, the rollout of its ATT, and the increase in advertisement stock, others are now coming at Apple, claiming it to become an online monopoly.
This implies that Apple has actually presented measures that efficiently prevent third parties (such as other advertisement platforms) from accurately tracking and determining ad performance. This has resulted in advertisers getting away those networks and investing more marketing dollars into Apple because of its ability to track that efficiency.
Apple has specified its goal to triple its marketing revenue and has currently made strides.
While some benefits come secondhand from rival challenges like Google and Amazon, Apple has paved its way with diversified income streams.
However, even the most “user privacy-centric” Apple continues to be inspected on its method to the top of search. Apple’s privacy and measurement efforts will continue to have a ripple effect throughout customers and marketers alike.
Featured Image: Primakov/Best SMM Panel