Apple Ad Network Gives Marketers A Brand-new Opportunity

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Apple’s advertisement network is making waves.

Usually understood for consumer products, Apple is putting greater emphasis on prioritizing its services category, that includes search advertisements in the App Shop.

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

How Apple Ad Network Fits In Today’s Search Market

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

Regarding the search market, Google and Amazon are generally top of mind. However, both conglomerates have dealt with public scrutiny from the government and consumers.

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

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

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

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

Principal analyst Andrew Lipsman from Expert Intelligence stated:

“I can easily imagine a situation in which Apple gets 10% of Google’s nearly $150 billion search ad service, which would translate to a $15 billion chance.”

Breaking Down Apple’s Providers Classification Revenue

Apple’s services classification within its thriving ad network includes the following:

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

Some items that fall under the services category consist of Apple Arcade, TV+, Music, and Fitness+.

Not surprisingly, the majority of Apple’s $19.6 billion ad profits came 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 television advertisement buys on its network. While this is not verified, lots of have speculated that Apple is in the initial preparation phases of a TV advertisement product.

Obstacles Still Loom For Apple’s Ad Network

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

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

Nevertheless, in November 2022, Apple submitted a brand-new class action claim against themselves, claiming that they continue to track consumers even after disabling tracking in their device settings. Because of this, the suit specifies that Apple’s pledges surrounding user privacy are “utterly false.”

On the other side, rivals such as Meta have actually seen a substantial effect on advertiser revenue as a direct outcome of ATT.

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

This implies that Apple has presented measures that successfully prevent 3rd parties (such as other ad platforms) from accurately tracking and measuring advertisement efficiency. This has resulted in marketers running away those networks and investing more marketing dollars into Apple due to the fact that of its ability to track that performance.

Summary

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

While some benefits come secondhand from rival difficulties like Google and Amazon, Apple has paved its method with varied revenue 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 throughout consumers and online marketers alike.

Featured Image: Primakov/Best SMM Panel