According to Gurman, Apple’s vice president of ad platforms Todd Teresi was asked to boost annual revenue to “double digits” from about $4 billion today. The iPhone maker is already testing search ads on maps, which could appear with places to eat, for example, when you search the app. Apple could also design ads in other apps, including Podcasts and Books, and even on Apple TV through a subscription model that would include an ad-supported tier in exchange for a cheaper monthly fee, Gurman predicts. Apple could also design ads in other apps, including Podcasts and Books, and even Apple TV… [+] through a subscription model that would include an ad-supported tier in exchange for a cheaper monthly fee, Gurman predicts. Future Publishing via Getty Images
Expanding Apple’s advertising business
This would be an extension of Apple’s current ad business, which is limited to the App Store – where developers pay to boost their app when certain search queries are entered – and the Stocks and News apps. Apple started asking users last year if they wanted to enable personalized ads in these apps, and you can turn it off in your iPhone’s privacy settings. Gurman also reiterated predictions that Apple plans to include ads in its Today tab — as I wrote about previously. It marks a major shift in Apple’s strategy, which has previously focused on hardware to boost revenue. Over the past couple of years, the iPhone maker’s focus has shifted towards its services, and this latest move is an extension of that. Apple’s new strategy comes after the App Tracking Transparency (ATT) features introduced in iOS 14.5 sidetracked Facebook’s advertising business by limiting its ability to track people on iPhones. Gourmand calls this “the elephant in the room,” saying: “Before I even talk about how Apple Inc. could expand its advertising activities, I must address the elephant in the room: how the company’s privacy efforts have prevented third-party advertising on its platform.” He goes on to talk about how ATT makes “perfect sense”, adding that people should be able to choose whether they want to be tracked. However: “There’s no doubt that ATT has created some collateral damage: a significant revenue hit for companies large and small. “You might not feel too bad for social media giants like Meta Platforms Inc. and Snap Inc. who claimed to have lost billions of dollars as a result of Apple’s changes, but smaller developers also say the feature has turned their businesses upside down,” Gurman said. he adds. With that in mind, Gurman calls Apple’s decision to expand its advertising business “ironic.” This is especially true since the way Apple personalizes its ads is based on the data you generate using its other services. “This doesn’t seem like a privacy policy at first,” says Gurman. Gurman makes a very good point—and while you can turn off Personalization, the iPhone maker can collect data, including your carrier, device type, and what you read. Apple has been heavily promoting its privacy credentials for some time now, so hopefully it will still be easy for people to opt out of personalization in their settings. However, for the sake of transparency, the iPhone manufacturer should ensure that it is clear about the data it collects about you and that it adheres to its own ATT rules.
