Apple Advertisement Network Provides Online Marketers A Brand-new Opportunity

Posted by

Apple’s advertisement network is making waves.

Typically understood for consumer products, Apple is placing greater emphasis on prioritizing its services classification, which includes search ads in the App Shop.

Solutions are now Apple’s second-highest income generator, and this short article analyzes how it got there and what it means for marketers.

How Apple Advertisement Network Fits In Today’s Search Market

While Apple revealed its expansion of available advertisement formats and stock in the App Shop, that’s not the only way it increased its earnings.

Relating to the search market, Google and Amazon are usually top of mind. However, both corporations have dealt with public examination from the government and customers.

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

Not only that, however 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 remarkable press, either. A few of the newsworthy class action lawsuits that harm Amazon consisted of:

  • $1 billion antitrust case in the UK
  • California antitrust lawsuit
  • False marketing around Prime Day
  • Stealing tips from shipment motorists
  • Wage theft

With both Google and Amazon under scrutiny, this opens up a chance for Apple to sit at the search table.

Principal analyst Andrew Lipsman from Expert Intelligence stated:

“I can easily picture a situation in which Apple gets 10% of Google’s almost $150 billion search ad service, which would equate to a $15 billion opportunity.”

Breaking Down Apple’s Solutions Classification Income

Apple’s services category within its flourishing advertisement network consists of the following:

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

Some products that fall under the services category consist of Apple Game, TELEVISION+, Music, and Physical fitness+.

Not surprisingly, most of Apple’s $19.6 billion advertisement revenue originated from App Store advertisements in 2022.

Following suit from other top online streaming services like Netflix and Hulu, Apple TV+ will likely start supporting TV ad purchases on its network. While this is not validated, numerous have actually hypothesized that Apple is in the preliminary planning stages of a television ad product.

Challenges Still Loom For Apple’s Ad Network

Legal battles around consumer privacy and competitors are not unsusceptible to Apple.

In efforts to protect consumer personal privacy, Apple presented its App Tracking Openness (ATT) in 2021, badly preventing marketing attribution efforts on other platforms.

Nevertheless, in November 2022, Apple submitted a brand-new class action suit against themselves, declaring that they continue to track consumers even after disabling tracking in their gadget settings. Because of this, the lawsuit mentions that Apple’s promises surrounding user privacy are “entirely incorrect.”

On the other side, competitors such as Meta have actually seen a considerable impact on marketer earnings as a direct outcome of ATT.

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

This indicates that Apple has actually presented steps that efficiently avoid 3rd parties (such as other ad platforms) from precisely tracking and measuring advertisement efficiency. This has led to advertisers leaving those networks and investing more marketing dollars into Apple because of its capability to track that efficiency.

Summary

Apple has actually specified its goal to triple its marketing profits and has actually already made strides.

While some advantages come secondhand from rival difficulties like Google and Amazon, Apple has actually 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 online marketers alike.

Featured Image: Primakov/Best SMM Panel