Apple will expand its advertising to new areas on the iPhone and iPad in an effort to increase revenue.
App Tracking Transparency (ATT). Apple introduced ATT last year, which allowed users to choose whether to allow third-party apps across apps to track their activity. Meta, Snap, as well as other smaller developers, were said to have suffered billions in losses due to the feature. Meta was rumored not to have developed Basic Ads, which only tracked the most basic metrics like engagement or video views.
The current state of Apple ads. Apple’s current advertising efforts include display advertisements in the News and Stocks apps as well as in the App Store (advertising applications) on all Apple devices and inside TV+. A portion of the News app’s ads go to publishers. This is true even if you pay $10 per month. Although you can turn off ad personalization on your device, the system will still use information about your device, carrier and the types of articles you are reading to show ads. Apple claims they can do this because the system does not track you across other apps or websites. ATT is designed to block tracking across websites and apps outside of Apple’s. Apple claims that this is not happening so they don’t need a pop-up.
Where Apple ads are headed. According a Bloomberg report, display ads are displayed in the search tab. Apple will soon expand the ads to the main Today tab and third-party download pages for apps. Developers can pay to have their apps appear in search results when users type in search terms that are related to the app.
Todd Teresi, vice president of Apple ads group, discusses how to increase the business’s revenue by “double digits” over the current $4 billion. Blomberg says that this could include expanding search ads to Maps and adding ads to digital storefronts such as Books and Podcasts. There may also be multiple tiers to TV+.
Read the complete article. Click here to read the full Bloomberg article.
Why we care. Expanding could open up more advertising opportunities, which could be cheaper. Brands may be interested in having their business listings sponsored, just like they could on Yelp and other local search platforms. Tracking would be limited but brands that are focused on vanity metrics like engagement and video views may still be able to leverage data from Apple activity to make the ads worth it. Because there is less user data to target, the cost per tap will likely be lower. Brands would need to experiment with placement options to make sure they are getting the best results.
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