Apple Ad Network Provides Marketers A Brand-new Chance

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Apple’s ad network is making waves.

Typically understood for customer products, Apple is positioning greater emphasis on prioritizing its services classification, which includes search ads in the App Shop.

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

How Apple Advertisement Network Suits Today’s Browse Market

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

Relating to the search market, Google and Amazon are generally leading of mind. However, both conglomerates have faced public scrutiny from the 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, however the extreme fines that accompanied the antitrust judgments have actually led Google to lose some of its market share.

Amazon hasn’t had the most remarkable press, either. Some of the newsworthy class action claims that injure Amazon included:

  • $1 billion antitrust case in the UK
  • California antitrust lawsuit
  • False advertising around Prime Day
  • Stealing tips from shipment chauffeurs
  • Wage theft

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

Principal analyst Andrew Lipsman from Insider Intelligence stated:

“I can quickly think of a situation in which Apple gets 10% of Google’s almost $150 billion search ad company, which would translate to a $15 billion opportunity.”

Breaking Down Apple’s Services Category Earnings

Apple’s services category within its growing ad network includes the following:

  • Marketing profits from the App Shop
  • Products
  • Streaming services

Some products that fall under the services classification consist of Apple Arcade, TELEVISION+, Music, and Fitness+.

Not surprisingly, most of Apple’s $19.6 billion ad earnings originated from App Store ads in 2022.

Doing the same from other top online streaming services like Netflix and Hulu, Apple TV+ will likely begin supporting TV advertisement buys on its network. While this is not confirmed, lots of have speculated that Apple is in the preliminary preparation phases of a TV ad item.

Obstacles Still Loom For Apple’s Ad Network

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

In efforts to protect consumer privacy, Apple introduced its App Tracking Transparency (ATT) in 2021, seriously preventing marketing attribution efforts on other platforms.

Nevertheless, in November 2022, Apple submitted a new class action suit against themselves, claiming that they continue to track consumers even after disabling tracking in their device settings. Since of this, the lawsuit specifies that Apple’s guarantees surrounding user privacy are “absolutely incorrect.”

On the other side, competitors such as Meta have seen a significant impact on marketer revenue as a direct outcome of ATT.

Integrating the death of Apple’s IDFA, the rollout of its ATT, and the increase in advertisement stock, others are now coming at Apple, declaring it to become an online monopoly.

This suggests that Apple has rolled out steps that effectively 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 efficiency.

Summary

Apple has actually stated its goal to triple its marketing earnings and has currently made strides.

While some advantages come secondhand from rival obstacles like Google and Amazon, Apple has paved its method with diversified earnings streams.

Nevertheless, even the most “user privacy-centric” Apple continues to be scrutinized on its method to the top of search. Apple’s personal privacy and measurement efforts will continue to have a ripple effect throughout customers and online marketers alike.

Featured Image: Primakov/Best SMM Panel