Apple Advertisement Network Offers Marketers A Brand-new Chance

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Apple’s ad network is making waves.

Usually known for consumer products, Apple is placing higher focus on prioritizing its services category, that includes search ads in the App Store.

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

How Apple Advertisement Network Suits Today’s Search Market

While Apple revealed its expansion of readily available advertisement formats and inventory in the App Shop, that’s not the only way it increased its revenue.

Concerning the search market, Google and Amazon are usually top of mind. However, both corporations have actually faced public analysis from the federal government and customers.

Google has actually made headlines this year dealing with antitrust fights in both the United States and the European Union.

Not just that, however the severe fines that accompanied the antitrust rulings have led Google to lose a few of its market share.

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

  • $1 billion antitrust case in the UK
  • California antitrust claim
  • Incorrect advertising around Prime Day
  • Taking suggestions from shipment drivers
  • Wage theft

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

Principal analyst Andrew Lipsman from Expert Intelligence mentioned:

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

Breaking Down Apple’s Solutions Classification Revenue

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

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

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

Not surprisingly, most of Apple’s $19.6 billion ad income came from App Store advertisements in 2022.

Following suit from other top online streaming services like Netflix and Hulu, Apple TV+ will likely begin supporting television ad purchases on its network. While this is not confirmed, numerous have speculated that Apple is in the preliminary preparation phases of a television ad product.

Obstacles Still Loom For Apple’s Ad Network

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

In efforts to secure customer personal privacy, Apple presented its App Tracking Transparency (ATT) in 2021, seriously preventing marketing attribution efforts on other platforms.

However, in November 2022, Apple filed a new class action suit against themselves, claiming that they continue to track customers even after disabling tracking in their gadget settings. Since of this, the suit mentions that Apple’s promises surrounding user privacy are “absolutely false.”

On the other side, competitors such as Meta have actually seen a substantial influence on advertiser earnings as a direct result of ATT.

Integrating the death of Apple’s IDFA, the rollout of its ATT, and the boost in ad 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 3rd parties (such as other advertisement platforms) from precisely tracking and determining ad performance. This has actually 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 mentioned its goal to triple its marketing profits and has currently made strides.

While some benefits come secondhand from rival difficulties like Google and Amazon, Apple has paved its way with varied earnings streams.

However, even the most “user privacy-centric” Apple continues to be inspected on its method to the top of search. Apple’s personal privacy and measurement efforts will continue to have a causal sequence across consumers and online marketers alike.

Included Image: Primakov/Best SMM Panel