Apple Ad Network Offers Marketers A Brand-new Chance

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Apple’s ad network is making waves.

Typically known for consumer items, Apple is positioning greater focus on prioritizing its services category, which includes search ads in the App Store.

Solutions are now Apple’s second-highest earnings generator, and this article examines how it arrived and what it means for online marketers.

How Apple Ad Network Fits In Today’s Search Market

While Apple announced its growth of available advertisement formats and inventory in the App Store, that’s not the only way it increased its profits.

Concerning the search market, Google and Amazon are usually top of mind. However, both conglomerates have dealt with public examination from the federal government and consumers.

Google has made headlines this year dealing with antitrust battles in both the United States and the European Union.

Not just that, but the severe fines that accompanied the antitrust rulings have led Google to lose a few of its market share.

Amazon hasn’t had the most amazing press, either. Some of the relevant class action suits that hurt Amazon included:

  • $1 billion antitrust case in the UK
  • California antitrust suit
  • Incorrect marketing around Prime Day
  • Taking suggestions from delivery motorists
  • Wage theft

With both Google and Amazon under scrutiny, this opens an opportunity for Apple to take a seat at the search table.

Principal analyst Andrew Lipsman from Insider Intelligence stated:

“I can easily envision a scenario in which Apple grabs 10% of Google’s nearly $150 billion search advertisement business, which would equate to a $15 billion chance.”

Breaking Down Apple’s Solutions Classification Income

Apple’s services category within its thriving ad network consists of the following:

  • Marketing profits from the App Shop
  • Products
  • Streaming services

Some products that fall under the services classification include Apple Arcade, TELEVISION+, Music, and Physical fitness+.

Not surprisingly, most of Apple’s $19.6 billion advertisement earnings 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 ad purchases on its network. While this is not verified, many have actually speculated that Apple is in the initial planning stages of a television ad item.

Difficulties Still Loom For Apple’s Advertisement Network

Legal battles around customer privacy and competition are not immune to Apple.

In efforts to secure customer privacy, Apple presented its App Tracking Transparency (ATT) in 2021, badly hindering marketing attribution efforts on other platforms.

However, in November 2022, Apple submitted a new class action lawsuit versus themselves, declaring that they continue to track consumers even after disabling tracking in their device settings. Due to the fact that of this, the claim states that Apple’s pledges surrounding user privacy are “utterly false.”

On the other side, competitors such as Meta have seen a substantial effect on advertiser earnings as a direct result of ATT.

Integrating the death of Apple’s IDFA, the rollout of its ATT, and the increase in ad inventory, others are now coming at Apple, declaring it to become an online monopoly.

This indicates that Apple has actually presented measures that effectively prevent third parties (such as other ad platforms) from precisely tracking and measuring advertisement performance. This has caused advertisers running away those networks and investing more marketing dollars into Apple since of its ability to track that performance.

Summary

Apple has actually mentioned its objective to triple its advertising revenue and has currently made strides.

While some benefits come secondhand from competitor challenges like Google and Amazon, Apple has paved its way with varied income streams.

Nevertheless, even the most “user privacy-centric” Apple continues to be scrutinized on its method to the top of search. Apple’s personal privacy and measurement efforts will continue to have a ripple effect throughout consumers and online marketers alike.

Featured Image: Primakov/Best SMM Panel