Apple Ad Network Gives Online Marketers A New Opportunity

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Apple’s ad network is making waves.

Normally understood for consumer products, Apple is positioning higher emphasis on prioritizing its services category, that includes search advertisements in the App Store.

Solutions are now Apple’s second-highest revenue generator, and this post examines how it arrived and what it implies for marketers.

How Apple Advertisement Network Suits Today’s Search Market

While Apple revealed its expansion of readily available ad formats and inventory in the App Store, that’s not the only method it increased its profits.

Regarding the search market, Google and Amazon are typically top of mind. However, both corporations have actually faced public examination from the federal government and customers.

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

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

Amazon hasn’t had the most exceptional press, either. Some of the newsworthy class action suits that injure Amazon consisted of:

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

With both Google and Amazon under scrutiny, this opens up an opportunity for Apple to sit at the search table.

Principal analyst Andrew Lipsman from Insider Intelligence stated:

“I can easily envision a scenario in which Apple grabs 10% of Google’s almost $150 billion search advertisement business, which would equate to a $15 billion opportunity.”

Breaking Down Apple’s Providers Category Income

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

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

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

Not surprisingly, the majority of Apple’s $19.6 billion ad earnings came from App Shop advertisements in 2022.

Following suit from other top online streaming services like Netflix and Hulu, Apple television+ will likely start supporting television advertisement purchases on its network. While this is not verified, many have speculated that Apple is in the initial planning phases of a television ad item.

Difficulties Still Loom For Apple’s Ad Network

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

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

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

On the other side, competitors such as Meta have seen a substantial impact on advertiser profits 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 end up being an online monopoly.

This implies that Apple has rolled out steps that effectively avoid 3rd parties (such as other ad platforms) from properly tracking and determining ad performance. This has led to advertisers leaving those networks and investing more marketing dollars into Apple since of its ability to track that performance.

Summary

Apple has actually specified its objective to triple its marketing revenue and has already made strides.

While some benefits come secondhand from rival obstacles like Google and Amazon, Apple has actually paved its method with varied profits streams.

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

Included Image: Primakov/Best SMM Panel