Technology

Apple’s next billion dollar idea? Show more ads on your iPhone

Image: Patrick Holland/CNET.

According to some articles, Apple will aim to put more ads on the iPhone through its own App Store apps, Maps, Books and Podcasts.

Mark Gurman, Apple Watcher at Bloomberg, reports that VP of advertising Todd Terezi wants to significantly expand the advertising business. He would like to accelerate the current rate of $4 billion a year to double digits.

Extensive ad placements

According to the journalist, Apple could achieve several billion dollars in advertising turnover by helping more developers to promote their applications in the App Store. Apple can extend this advertising model to its Plans, Books, and Podcasts apps.

At the same time, the Apple TV+ brand streaming service can also be sponsored by ads to show a lower price. The goal is to respond to the movement of viewers who are starting to reduce their subscriptions to streaming services. Thus, Apple will join other streaming giants that have created ad-supported subscriptions, such as Netflix and Disney+.

Services brought in $19.6 billion for Apple in the most recent quarter ending June 25. Meanwhile, during the same period, products brought in $63.4 billion.

When Tim Cook struggled with online advertising

Since July, the App Store has received more ad spaces. While ads were previously limited to the Search tab and search results, ads are now placed on the main Today page. Application pages also contain ads. New ad placements are also expected to appear in the News, Apple Store, and Stocks apps with iOS 16, which will be released this fall.

But the company has poor opportunities for online advertising. Particularly because Tim Cook, its CEO, has always criticized the ad-sponsored Internet. In 2018, he accused Facebook, Google and other big internet companies of becoming “industrial data complexes” targeting users with military precision.

In addition, Apple promises to protect the privacy of its customers by offering services such as using random identifiers and pledging not to target individuals or small groups for tracking data, favoring segments of 5,000 or more users. In 2021, Apple released the App Tracking Transparency Report so users can see what data from apps is being used to track their behavior.

Source: .com

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