According to Mark Gurman of Bloomberg, Apple wants to increase the number of apps that it advertises to in order to triple its ad revenue, which currently stands at $4 billion annually.
Apple advertisements currently occur in App Store app searches, where developers pay for promoted positions in results, in addition to more conventional ads that show up in the News and Stocks apps. Apple makes money from airing advertisements during MLB Friday Night Baseball streaming, but the corporation wants to grow by increasing the number of apps for the iPhone and iPad where those advertisements are present.
Bringing ads to the Maps app might be the first step in Todd Teresi’s plan to triple Apple’s current ad revenue, according to Gurman in the most recent issue of his “Power On” newsletter. Teresi is Apple’s vice president of advertising platforms. According to Gurman, Apple has experimented including sponsored listings in Maps search results internally; if it does so, this could only be the start of a larger expansion.
Gurman hypothesizes that if Apple were to follow the example of Netflix and Disney+ by offering an ad-supported tier for Apple TV+, the company might also add advertisements to the digital stores of its Books and Podcasts applications.
New placements will be added to the “Today” screen as well as to individual app pages, enabling developers to purchase spots for the first time outside of the Search box and search results, as Apple has already stated.
Apple will be conscious of the fact that even a small intrusion into other facets of its software could detract from the premium experience that users have come to expect from its products and expose it to increased criticism regarding its App Tracking Transparency (ATT) framework, which has reportedly had a significant negative effect on both large and small businesses.
German competition authorities are currently looking at Apple’s ATT monitoring policies to see if they favor Apple over competing companies or prevent the development of third-party apps. Apple has refuted claims that the ATT framework unjustly favors the business at the expense of third parties.
It paid for a research on ATT’s effects earlier this year, which was carried out by the marketing division of Columbia Business School. The investigation came to the conclusion that allegations to the contrary were hypothetical and without proof, and that it was improbable that Apple had benefited materially financially since the implementation of the privacy feature.