Apple Advertisement Network Gives Marketers A Brand-new Opportunity

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Apple’s advertisement network is making waves.

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

Services are now Apple’s second-highest revenue generator, and this post takes a look at how it got there and what it suggests for online marketers.

How Apple Ad Network Fits In Today’s Search Market

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

Concerning the search market, Google and Amazon are typically leading of mind. Nevertheless, both conglomerates have faced public scrutiny from the government and consumers.

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

Not only that, but the extreme fines that accompanied the antitrust rulings have led Google to lose some of its market share.

Amazon hasn’t had the most amazing press, either. Some of the newsworthy class action lawsuits that harm Amazon included:

  • $1 billion antitrust case in the UK
  • California antitrust suit
  • Incorrect marketing around Prime Day
  • Stealing ideas from delivery drivers
  • Wage theft

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

Principal expert Andrew Lipsman from Expert Intelligence stated:

“I can easily think of a situation in which Apple grabs 10% of Google’s nearly $150 billion search ad business, which would translate to a $15 billion opportunity.”

Breaking Down Apple’s Solutions Category Income

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

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

Some items that fall under the services category include Apple Game, TV+, Music, and Fitness+.

Not surprisingly, the majority of Apple’s $19.6 billion advertisement profits came from App Shop ads in 2022.

Following suit from other leading online streaming services like Netflix and Hulu, Apple TV+ will likely start supporting television advertisement purchases on its network. While this is not confirmed, lots of have actually hypothesized that Apple remains in the preliminary preparation phases of a TV advertisement item.

Obstacles Still Loom For Apple’s Advertisement Network

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

In efforts to secure consumer 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 new class action claim versus themselves, claiming that they continue to track customers even after disabling tracking in their gadget settings. Since of this, the lawsuit states that Apple’s guarantees surrounding user personal privacy are “utterly incorrect.”

On the other side, rivals such as Meta have seen a substantial impact on advertiser revenue 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, claiming it to become an online monopoly.

This suggests that Apple has actually rolled out steps that effectively prevent 3rd parties (such as other advertisement platforms) from properly tracking and determining ad performance. This has actually led to marketers running away those networks and investing more marketing dollars into Apple because of its ability to track that efficiency.

Summary

Apple has actually stated its objective to triple its marketing revenue and has actually already made strides.

While some benefits come secondhand from rival obstacles 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 way to the top of search. Apple’s personal privacy and measurement efforts will continue to have a causal sequence across consumers and marketers alike.

Included Image: Primakov/Best SMM Panel