Apple advertising company: how its revenues grew after restrictions for others

Apple and digital advertising always didn’t seem to get along. Twelve years ago, the Cupertino-based company introduced iAd, a mobile advertising solution with the distinction that it would run exclusively within its ecosystem. It didn’t work. Six years later, iAd was closed. Today, however, it increasingly seems that Apple is in the process of building its own advertising empire.

While Apple does not provide detailed data on what its digital advertising business is generating, estimates bloomberg put it in the income of 4000 million dollars. To get an idea, a figure that is already close to Twitter or Snapchat, companies that have advertising as their main source of income, and even at that time – though not now – would have been higher than TikTok.

Apple’s growth in the advertising market is primarily due to advertising in the App Store., which has more and more gaps, came after last year’s updates that made it easy for its users to block the monitoring that many applications focused on this business were doing. This change hit Facebook (now Meta) and, to a lesser extent, Google hard, causing prices to rise and a bit of a downturn in the online advertising market.

Privacy advertised

Apple has long touted the privacy and security benefits of its products over alternatives such as Google’s Android and Microsoft’s Windows. But the increase in publicity, along with the spur this update has caused to its competitors, has drawn some criticism, and who knows if at some point it will launch an antitrust investigation, as Mark Zuckerberg has asked several times already.

We recently learned that Apple plans to increase the staff of its advertising division and advertise across your various services and platforms to grow your business to $30 billion in four years.

As explained Financial Timesimplements various strategies, including displaying ads in more of Apple’s own iPhone and iPad apps, including Apple Maps.

Everything is part of a long-term strategy that Apple has been pursuing in recent years, with the ultimate goal of increasing revenue in its services division, which includes, in addition to advertising, what generates commissions from the App Store, Apple Music, iCloud, Apple News, Apple TV+ and Apple Pay. According to the last quarter, this split meant $19,600 million in revenue, 25% of the total. Five years ago they were only 13%.

But as we say Apple’s advertising business has been on the rise since it made changes to its app tracking policy last year.which allowed iPhone users to opt out of being tracked in other apps on their phones.

Meta has already calculated that due to Apple’s changes this year, they will lose 10,000 million in ad revenue.. The changes that Apple has proposed have been covered by the numerous scandals that Facebook has had, and of course it seems like a positive move for users. Apple has also used these changes to bolster its reputation as a privacy company, which some voices are now accusing. Because yes, Apple along the way has also managed to put up fences in the business it is now betting on.

Your biggest ad right now seems to be search ads on the App Store. Analyst firm Branch found that Apple’s in-house search advertising accounted for about 50% of iPhone app downloads in the first half of the year, up from about 20% in April 2019. 2021, before the company implemented its privacy changes.

Targeted advertising vs. ad tracking

Nonetheless, Apple offers a different user discovery model to serve relevant ads to them. and it can also be effective for the advertiser.

Their ads are not targeted at individuals or small groups, but only at segments of at least 5,000 users. The Company also does not create individual user profiles in its applications and services. Instead, he says to rely on random IDs.

If Apple may face monopoly investigations in this sector in the future, only time will tell. What seems clear is that his changes and his interest in the advertising market depend in part onbuilding this business into the future and therefore the internet in general.

The visions of Meta and Apple are divergent and increasingly incompatible. Facebook wants to capture and monetize across all possible devices and platforms. Apple wants to lure users into its own hardware-centric universe, in part by positioning itself as a privacy-focused company. The outcome of a battle can affect the type of information we see when browsing the Internet. and, as we say, the dominant business model of the web.