Apple is reportedly planning to bring ads to your iPhone and iPad. In the latest edition of Power On newsletter, Bloomberg’s Mark Gurman said that Apple VP Advertising Platforms Todd Teresi aims to increase annual revenue into the ‘double digits’, up from about $4 billion-per-year currently. According to him, the iPhone maker has already started testing search ads in the Maps app which may eventually be expanded to other digital storefronts like Apple Books and Apple Podcasts.
At present, Apple shows ads in the App Store where developers pay to have their app promoted on the search page. The Cupertino-based company is reportedly planning to introduce the similar advertising model for Maps as well. Similarly, publishers could pay for their work to appear higher in results in the books and podcast apps.
In his newsletter, Gurman says that it is likely that ads on the App Store may be expanded to the Today tab and app download pages. “On the App Store, display ads are currently shown in the search tab in the Suggested panel. Apple will also soon expand ads to the main Today tab and within third-party app download pages”, he says.
App Tracking Transparency feature: A collateral damage?
Apple introduced the App Tracking Transparency feature with iOS 14.5. The feature enabled iPhone users to decide whether apps can track them across other platforms and websites. Developers must get permission via the app tracking transparency prompt for data that’s collected in the app and used for tracking.
While the feature empowered users to choose whether they want to be tracked or not, it has reportedly caused a drop in revenue for various businesses. As per a report, Apple’s App Tracking Transparency feature has led to 13% decline in revenue for small businesses. Meanwhile, data obtained from research firm Omdia shows that Apple’s advertising business grew 238 percent to $3.7 billion in 2021.
Ads do add to the overall revenue of the company. But, is Apple risking too much by introducing ads on iPhones. Are Apple users ready to live with more ads?
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