Apple’s strategy to bolster its advertising revenue is beginning to bear fruit. According to a study conducted by analyst Appsumer, published on September 6, Apple gains ground on the two leaders online advertising, Meta and Google. In recent months the Apple brand has multiplied the announcements concerning the greater integration of advertisements in the iOS ecosystem. The App Store is currently at the heart of the American company’s advertising model, but it does not intend to stop there. More Apple services may be affected by the appearance of more advertisements.
Developers embrace App Store advertising
Research conducted by Appsumer is based on an analysis of the budgets allocated to online advertising among 100 companies who offer their applications on the App Store. The arrival of App Tracking Transparency (ATT) in a privacy update in 2021 did much to bolster Apple’s advertising market. This feature which limits user advertising tracking from one application to another dealt a severe blow to Meta, which is heavily dependent on this economic model with Facebook.
Netflix subscription with advertising arrives in November
The Cupertino company seeks to hold full control over advertising online present in its ecosystem. A strategy that strongly frustrates other tech players who offer their services and applications on the App Store. Apple has long been way behind on advertising, but the company has just kicked things into high gear.
In 2021, the company launched Search Ads, its own ad network for promotional placements when searched on the App Store. Membership in this program increased by 4 percentage points in the second quarter of 2022 according to Appsumer. Today, 94.8% of businesses surveyed by the analyst use Search Ads to promote their apps. At Facebook, the membership rate fell by 3 points to 82.8% and Google noted a slight drop of 2 points to 94.8%. The two giants still remain the leaders in online advertising in terms of revenue.
Apple would recruit massively in the advertising sector
As reminded by FinancialTimesGoogle and Facebook advertising revenues were respectively at $209 billion and $115 billion in 2021. Sums which remain very largely ahead of the results of Apple and its $5 billion of turnover anticipated in 2022. According to forecasts by the research group Evercore ISI, the advertising market of Tim Cook’s company would weigh 30 billion dollars in four years.
Appsumer chief executive Shumel Lais attributes this growth in advertising at Apple to an increase in the number of app developers paying the brand to Apple to promote their products in the App Store. The American giant is even considering the possibility of extending advertising space to its other applications such as Podcasts, Books or in Apple Maps. Lais also explains that App Tracking Transparency, in addition to holding back competitors, also gives Apple more visibility on most services running on iOS.
the FinancialTimes revealed that Apple is preparing to work twice as hard by carrying out a vast recruitment campaign in the advertising sector. The company already has 250 employees within its dedicated team and would currently fill 216 positions to almost double its workforce. A number that the firm contested without giving more details. Data engineers, product managers and sales specialists are among the profiles that interest Apple. To Going forward, this strategy could raise concerns about the brand’s potential dominance in the iOS advertising market.