Did you know there’s more to Apple than just cool gadgets? While everyone has been talking about the new iPhones and Apple Watches, there’s a quieter side of Apple that’s been growing—advertising. Yes, Apple is stepping into the ad game, and it’s not just about selling sleek devices anymore.
Apple’s Stealthy Move into Ads
Instagram | Apple is even considering ads on Apple TV+.
Since 2016, Apple has been selling ads on Apple News and the App Store. But now, they’re taking it up a notch. In June, Apple allowed companies to buy ads on the front page of the App Store. In August, job postings hinted at a self-service platform for businesses to book ads on Apple products. And guess what? Apple is even considering ads on Apple TV+! This means more ads for Apple users, putting Apple in direct competition with giants like Google and Meta.
Why is Apple Doing This?
Smartphones aren’t selling as fast, and Apple needs new ways to make money. With services like Apple News+, streaming, and fitness subscriptions, Apple is exploring different revenue streams. Michael Cusumano from MIT thinks Apple looked at Amazon’s success in ads and said, “Why not us too?” Estimates suggest Apple makes about $4 billion a year from ads.
- Alternative Revenue Hunt: With smartphone sales slowing down, Apple needs new sources of income.
- Subscription Expansion: Apple’s growing subscription services provide a way to accommodate ads.
- Learning from Amazon: Apple might be inspired by Amazon’s ad business, which has seen massive growth.
Risking Upset Apple Fans
Instagram | CEO Tim Cook has criticized ad-driven models as invasive, emphasizing user privacy.
But here’s the catch. Apple fans are used to a premium, ad-free experience. Pushing ads might upset them. Apple CEO Tim Cook has always emphasized privacy, calling out Google and Meta. Now, Apple’s recent interest in ads is even facing antitrust scrutiny due to its privacy feature, App Tracking Transparency (ATT).
- User Privacy Concerns: Apple’s move into ads might go against its reputation for privacy.
- Antitrust Scrutiny: ATT has led to investigations, with regulators questioning its impact on competitors.
What’s in Store for Apple’s Ad Business?
Instagram | Apple Music and Apple TV+ could become key spaces for ads.
Peter Newman from Insider Intelligence sees potential for Apple’s ad business, especially in services like Apple Music and Apple TV+. However, he doesn’t see Apple reaching the scale of giants like Google and Meta. Apple’s privacy focus might limit ad targeting.
- Ad Revenue Estimate: Some expect Apple’s ad business to be around $30 billion by 2026.
- Privacy Pledge: Apple’s commitment to privacy may restrict the extent of its ad targeting.
Apple’s Hiring Spree and Challenges Ahead
Apple is serious about ads. Job listings reveal plans to double the workforce dedicated to its ad platforms. However, balancing its privacy reputation with the data-heavy ad industry might be challenging.
- Growing Team: Apple is hiring more people for its ad platforms, indicating a significant push.
- Privacy Challenge: Maintaining its privacy reputation while entering the ad world could be tricky.
Apple is not just about cool devices; it’s now an ad player. While this move could bring in more money, it also risks upsetting the loyal fanbase that values the Apple experience. The big question is, can Apple successfully navigate the ad world without losing its privacy-focused charm? Only time will tell.
