Apple Ad Network Gives Online Marketers A Brand-new Opportunity

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Apple’s advertisement network is making waves.

Generally known for consumer products, Apple is putting greater focus on prioritizing its services category, which includes search advertisements in the App Shop.

Services are now Apple’s second-highest profits generator, and this article analyzes how it arrived and what it means for online marketers.

How Apple Advertisement Network Fits In Today’s Search Market

While Apple revealed its growth of offered ad 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 generally leading of mind. Nevertheless, both corporations have dealt with public examination from the government and customers.

Google has made headings this year handling antitrust battles in both the United States and the European Union.

Not only that, but the extreme fines that accompanied the antitrust judgments have led Google to lose some of its market share.

Amazon hasn’t had the most amazing press, either. Some of the relevant class action claims that hurt Amazon consisted of:

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

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

Principal analyst Andrew Lipsman from Insider Intelligence stated:

“I can easily picture a scenario in which Apple grabs 10% of Google’s almost $150 billion search ad service, which would translate to a $15 billion chance.”

Breaking Down Apple’s Solutions Category Income

Apple’s services category within its booming advertisement network includes the following:

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

Some products that fall under the services category include Apple Game, TV+, Music, and Physical fitness+.

Not surprisingly, the majority of Apple’s $19.6 billion advertisement profits originated from App Store advertisements in 2022.

Following suit from other leading 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 hypothesized that Apple remains in the initial preparation phases of a television advertisement item.

Challenges Still Loom For Apple’s Advertisement Network

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

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

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

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

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

This indicates that Apple has actually presented measures that effectively prevent 3rd parties (such as other advertisement platforms) from properly tracking and determining advertisement efficiency. This has actually resulted in marketers getting away those networks and investing more marketing dollars into Apple since of its ability to track that efficiency.

Summary

Apple has actually stated its objective to triple its advertising profits and has already made strides.

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

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

Featured Image: Primakov/SMM Panel