Apple Advertisement Network Provides Online Marketers A New Opportunity

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Apple’s ad network is making waves.

Generally known for customer items, Apple is positioning greater focus on prioritizing its services category, which includes search ads in the App Shop.

Providers are now Apple’s second-highest profits generator, and this article examines how it arrived and what it implies for marketers.

How Apple Ad Network Fits In Today’s Search Market

While Apple revealed its growth of offered ad formats and inventory in the App Store, that’s not the only method it increased its income.

Regarding the search market, Google and Amazon are normally top of mind. Nevertheless, both conglomerates have faced public examination from the government and customers.

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

Not only that, however the serious fines that accompanied the antitrust judgments have actually led Google to lose a few of its market share.

Amazon hasn’t had the most impressive press, either. A few of the relevant class action claims that injure Amazon consisted of:

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

With both Google and Amazon under examination, this opens up an opportunity for Apple to sit at the search table.

Principal analyst Andrew Lipsman from Insider Intelligence specified:

“I can quickly imagine a scenario in which Apple grabs 10% of Google’s almost $150 billion search ad service, which would translate to a $15 billion chance.”

Breaking Down Apple’s Services Category Profits

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

  • Advertising revenue from the App Shop
  • Products
  • Streaming services

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

Not surprisingly, the majority of Apple’s $19.6 billion ad earnings originated from App Store advertisements in 2022.

Doing the same from other top online streaming services like Netflix and Hulu, Apple TV+ will likely begin supporting TV ad buys on its network. While this is not confirmed, numerous have speculated that Apple remains in the preliminary planning phases of a TV ad item.

Challenges Still Loom For Apple’s Advertisement Network

Legal fights around consumer personal privacy and competition are not immune to Apple.

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

Nevertheless, in November 2022, Apple submitted a brand-new class action lawsuit versus themselves, declaring that they continue to track customers even after disabling tracking in their device settings. Since of this, the lawsuit states that Apple’s guarantees surrounding user personal privacy are “absolutely incorrect.”

On the other side, rivals such as Meta have actually seen a considerable effect on advertiser income as a direct result of ATT.

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

This means that Apple has presented procedures that effectively avoid third parties (such as other ad platforms) from properly tracking and measuring advertisement performance. This has actually caused marketers fleeing those networks and investing more marketing dollars into Apple because of its ability to track that performance.

Summary

Apple has actually stated its goal to triple its advertising earnings and has already made strides.

While some advantages come secondhand from competitor obstacles like Google and Amazon, Apple has actually paved its way with varied profits streams.

Nevertheless, 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 causal sequence across customers and online marketers alike.

Featured Image: Primakov/Best SMM Panel