Advertising will be the new keyword, shaping the future of the tech giant.
According to Bloomberg reporter Mark Gurman , Apple wants to expand its advertising into other areas on iPhone and iPad to earn new revenue.
He said that Apple’s ambition with this business segment is very large. Just a few months ago, the advertising team gained a new place in the corporation. Vice President of Advertising Todd Teresi will work directly with Eddy Cue, Senior Vice President of Services, instead of Vice President Peter Stern as before.
Advertising is Apple’s new focus
Teresi is also constantly pushing to expand the scale of the advertising service. He said he wants to double the $4 billion in annual revenue next year.
Advertising is also a keyword mentioned by the giant in its recent financial report. CEO Tim Cook and Chief Financial Officer Luca Maestri said the group is facing many impacts from the consequences of Covid-19.
However, Cook remains steadfast in the field, calling it a great tool for app developers.
Reporter Mark Gurman believes that the iPhone maker is about to expand advertising in the search bar of Maps, digital service stores such as Apple Books, Apple Podcast. Meanwhile, TV+ will collect more advertising revenue with many customer segments.
Specifically, the ad search feature on Apple Maps will work similarly to the App Stores. Brands have to pay to be displayed in Apple’s search results. With the Books and Podcasts apps, providers can pay to appear at the top of search listings or appear on the entire app interface.
However, Apple will not show ads on third-party apps, at least for the foreseeable future, Mark Gurman said. The technology company tested this feature with iAd in 2010 and failed. At the same time, another issue arises as to whether these ads destroy the clean, minimalist interface that is the pride of Apple, according to Mark Gurman.
Before that, Apple’s advertising ambitions had been born since the company launched the “App Tracking Transparency” (ATT) feature. This privacy feature allows iPhone users to decide which apps can collect data for “advertising or sharing with data brokers”.
However, user information is inherently the key for businesses to propose more potential and profitable ads. Therefore, Bloomberg believes that this feature, although very useful to users when they have the right to choose whether they are tracked or not, has caused a series of companies to fall into dire straits because of declining profits.
Now, after ATT, Apple continues its ambition to expand its advertising business.
According to Bloomberg , the technology group is showing ads on News, Stocks, App Stores applications from iPhone, iPad to Mac. Apple also has an ad search feature similar to Google.
At the same time, recently, Apple also advertises in Apple TV + with the program “Friday Night Baseball” in cooperation with the American Baseball Federation.
On the News and Stocks apps, the ads are displayed exactly like regular web pages. Meanwhile, in the App Store, these banners display ads about the apps available in the app store, so it will be more useful to users. Part of the revenue from these ads will go to the developers, the rest goes to Apple’s pocket.
With the App Store, ads appear in the search bar in the Suggested section. Apple will add ads in the Today bar and download pages for third-party apps. Meanwhile, developers will have to pay to show ads for their apps in search results.
Going against tradition
According to Bloomberg , seeing ads on the website is normal, but with paid services like iOS, it is very rare. Mark Gurman says this fact runs counter to Steve Jobs’ claim that iCloud will be ad-free in 2011.
Although Apple claims that users can completely turn off ad personalization from iOS 15, in general, the advertising system still takes advantage of information such as the user’s carrier, device type and all of the user’s content.
But the question is why users can’t decide whether Apple tracks them like third-party apps.
In response to this, the company said the advertising system “does not track users between apps and websites of other companies”. This is also ATT’s “blind spot” when it doesn’t show pop-ups if not collecting data between many different apps.