Apple Ad Network Provides Marketers A Brand-new Chance

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Apple’s ad network is making waves.

Typically understood for consumer items, Apple is placing higher focus on prioritizing its services category, which includes search advertisements in the App Store.

Providers are now Apple’s second-highest revenue generator, and this post analyzes how it arrived and what it means for online marketers.

How Apple Advertisement Network Fits In Today’s Search Market

While Apple announced its expansion of offered advertisement formats and inventory in the App Shop, that’s not the only method it increased its profits.

Relating to the search market, Google and Amazon are generally leading of mind. However, both conglomerates have dealt with public scrutiny from the federal 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, but the severe fines that accompanied the antitrust rulings have led Google to lose some of its market share.

Amazon hasn’t had the most impressive press, either. Some of the relevant class action lawsuits that harm Amazon consisted of:

  • $1 billion antitrust case in the UK
  • California antitrust lawsuit
  • False advertising around Prime Day
  • Taking pointers from shipment drivers
  • Wage theft

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

Principal expert Andrew Lipsman from Expert Intelligence mentioned:

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

Breaking Down Apple’s Providers Category Revenue

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

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

Some items that fall under the services classification include Apple Arcade, TV+, Music, and Physical fitness+.

Not surprisingly, the majority of Apple’s $19.6 billion advertisement income came from App Store advertisements in 2022.

Following suit from other top online streaming services like Netflix and Hulu, Apple television+ will likely begin supporting television ad buys on its network. While this is not confirmed, many have speculated that Apple remains in the initial planning stages of a television advertisement item.

Challenges Still Loom For Apple’s Advertisement Network

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

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

However, in November 2022, Apple filed a new class action lawsuit against themselves, declaring that they continue to track consumers even after disabling tracking in their gadget settings. Since of this, the lawsuit states that Apple’s pledges surrounding user personal privacy are “absolutely incorrect.”

On the other side, competitors such as Meta have seen a significant 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 advertisement inventory, others are now coming at Apple, declaring it to end up being an online monopoly.

This indicates that Apple has presented measures that efficiently prevent third parties (such as other ad platforms) from precisely tracking and determining advertisement efficiency. This has caused advertisers leaving those networks and investing more marketing dollars into Apple due to the fact that of its capability to track that performance.

Summary

Apple has actually specified its objective to triple its marketing revenue and has actually currently made strides.

While some benefits come secondhand from competitor difficulties like Google and Amazon, Apple has actually paved its way with diversified profits streams.

Nevertheless, even the most “user privacy-centric” Apple continues to be inspected on its way to the top of search. Apple’s privacy and measurement efforts will continue to have a ripple effect across consumers and marketers alike.

Included Image: Primakov/SMM Panel