Martin expects the Amazon ad business to reach $37 billion this year, up from $4 billion just five years ago. In a note this past week, she pointed to the significant growth in Amazon’s ad business, which consists entirely of ads within its core e-commerce platform. Needham analyst Laura Martin is also bullish about the potential for Apple’s advertising. He thinks that Apple can reach 2.25% of the digital ad market by 2025-and rake in $20 billion a year in ad revenue. “Advertising is a great growth opportunity for Apple, and their tremendous installed base gives them a competitive advantage that they have not effectively exploited in the past,” he writes.ĭaryanani estimates that Apple’s ad business will generate $4 billion in revenue this year, or just 0.2% of the $600 billion online advertising market. Advertising could be part of the answer.ĭaryanani thinks that Apple’s ad revenue from the App Store alone could reach $7.1 billion by 2025. I’ve recently written about Apple’s need to find big new markets to juice growth. And the other will allow ads touting “apps you might also like” to appear on individual app product pages. One will allow ad placement on the Today tab, basically the site’s home page. In its latest quarterly filing with the Securities and Exchange Commission, Apple said that the largest contributors to its 12% growth in services revenue in the period were higher sales of advertising, cloud services, and AppleCare.Įvercore ISI analyst Amit Daryanani, who wrote about Apple’s new job listing in a research report this past week, notes that the iPhone maker in late July added two new ways for developers to advertise their wares in the App Store. In fact, the company’s income statement includes a contribution from ads, although it’s hidden in the Services line of the report. Meta has argued that Apple’s approach is bad for small business, but that message has been trumped by Apple’s persuasive support of privacy.įor Apple to now be talking about building an advertising business of its own is sure to ruffle some feathers at Meta and other ad firms.īut, to be clear, it isn’t that Apple has shunned advertising. Earlier this year, Meta said that Apple’s policy change would reduce its advertising revenue this year by about $10 billion. The policy change has caused immense pain for the likes of Meta, YouTube, and Apple has taken the position that consumer privacy comes first, and it now requires iPhone users to opt in when apps request to track how people travel around the web. Apple’s decision to adopt a policy called App Tracking Transparency has made it far harder for Meta’s Facebook and Alphabet’s YouTube to target and attribute advertising campaigns. Apple said the new hire would “drive the design of the most privacy-forward, sophisticated demand side platform possible.innovating on some of Apple’s most confidential and strategic plans to design products that deliver business growth and experiences that exceed customer expectations.” The job posting says that the project will target ads placed in various Apple Services what isn’t clear is whether Apple might eventually try to target the wider world of advertising across apps and websites.Īpple declined to comment on the posting or other elements of its ad strategy.
0 kommentar(er)
