Apple Ad Network Offers Marketers A New Opportunity

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Apple’s advertisement network is making waves.

Usually understood for customer products, Apple is positioning higher emphasis on prioritizing its services classification, which includes search ads in the App Store.

Solutions are now Apple’s second-highest earnings generator, and this article examines how it got there and what it indicates for marketers.

How Apple Ad Network Suits Today’s Search Market

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

Concerning 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 handling antitrust fights in both the United States and the European Union.

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

Amazon hasn’t had the most amazing press, either. A few of the newsworthy class action lawsuits that injure Amazon consisted of:

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

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

Principal analyst Andrew Lipsman from Expert Intelligence specified:

“I can easily picture a circumstance in which Apple grabs 10% of Google’s nearly $150 billion search advertisement service, which would translate to a $15 billion opportunity.”

Breaking Down Apple’s Services Category Revenue

Apple’s services classification within its thriving advertisement network consists of the following:

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

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

Not remarkably, most of Apple’s $19.6 billion advertisement income came from App Shop ads in 2022.

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

Challenges Still Loom For Apple’s Advertisement Network

Legal fights around consumer privacy and competitors are not immune to Apple.

In efforts to safeguard consumer personal privacy, Apple presented its App Tracking Openness (ATT) in 2021, significantly preventing marketing attribution efforts on other platforms.

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

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

Combining the death of Apple’s IDFA, the rollout of its ATT, and the boost in advertisement stock, others are now coming at Apple, claiming it to end up being an online monopoly.

This suggests that Apple has actually rolled out steps that effectively prevent third parties (such as other advertisement platforms) from properly tracking and determining advertisement efficiency. This has led to advertisers fleeing those networks and investing more marketing dollars into Apple since of its capability to track that efficiency.

Summary

Apple has actually mentioned its goal to triple its marketing income and has currently made strides.

While some advantages come secondhand from competitor challenges like Google and Amazon, Apple has paved its method with varied profits streams.

Nevertheless, 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.

Featured Image: Primakov/Best SMM Panel