Advertising: Apple should plan more ads in its own services

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In the future, advertising could be displayed in significantly more Apple applications than before. The $4 billion-per-year advertising business is set to hit double digits, Bloomberg reports. Apple is planning advertising for this in applications such as Maps, Books and Podcasts as well as new TV+ subscriptions.

On Apple's own platforms such as iOS and iPadOS, advertising is still played out comparatively cautiously and is likely to be known primarily from areas such as the App Store. There, ads can be found in the search results, where they can be found in the first position before the actual results. Apple has also placed advertising in the recommended apps. Since the end of July, developers have also been able to place their apps prominently as advertising in the Today tab of the App Store, and new ads have also been added below the detailed view of an app in the “You might also like this” area.

Advertising manager reports to services manager

However, the advertising business is set to play a more important role in the future and has already been more closely interwoven with the services business. Todd Teresi, vice president of advertising, reports directly to Eddy Cue, senior vice president of services, instead of vice president Peter Stern following a reorganization. When Apple was still running its own iAd network up until 2016 to place advertising within apps, Teresi had already reported directly to Cue.

Advertising in Apple News even with a subscription

Advertising can already be found in other Apple offerings. In addition to the App Store, ads appear in Apple News, for example, which is not available in this country, and in the share app. In the news app, an unknown proportion of the revenue is to go to the publishers, who can also place their own advertising in their articles, the majority of which can be retained. Even if you subscribe to News+ for $10 a month or with Apple One, ads still appear in the Today tab of the News app, but at a reduced rate.

Ads in Maps, Books, and Podcasts

Bloomberg's Mark Gurman believes that Apple's Services will be increasingly enriched with advertising in the future. According to Gurman's latest newsletter, ads are already being tested behind the scenes in Apple Maps so that, for example, certain restaurants that have advertised with Apple appear at the top of the search results when searching for Italian or Japanese cuisine.

Apple is also planning ads for its own Books and Podcasts app. Here, too, the search results should be supplemented accordingly and advertising should appear within the apps. Apple TV+ could be expanded to include a lower price tier subsidized by ads, or only offer older content on a subscription with ads. Such an offer could be placed as an entry point into the service to attract new users to the full-price subscription.