- Apple’s $5 billion advertising division is a sleeping giant, experts say.
- Experts predict that Apple will bring ads to more of its apps and services next year.
- It’s also likely that Apple will tighten the screws on the tracking further, experts told Insider.
Apples the influence on the advertising industry has intensified this year and will increase even more in 2023.
Its 2021 privacy policy update, which requires app developers to seek permission before tracking users, is expected to erase $16 billion in revenue from Facebook, YouTube, Snap and Twitter this year according to an estimate.
The company was also His own expanding advertising empire. Its App Store search ad activity grows on a clip and Apple started pitching advertisers major league soccer advertising packages.
With dozens of open advertising-related roles listed on its careers website, experts believe this is just the beginning. Evercore ISI analysts predict Apple’s advertising division could generate $30 billion in revenue over the next four years, from about $5 billion now.
Here’s what experts think Apple might have in store for its advertising business next year, from TV ads to other privacy interventions. Apple did not respond to a request for comment.
Prediction 1: Ads will come on Maps or Podcasts
Apple currently runs ads in its App Store and on its News and Stocks apps. Experts believe it will expand ads across its app portfolio in the coming months.
Eric Seufert, media strategist and founder of the blog Mob Dev Memo, said maps and podcasts are the biggest advertising opportunities for Apple.
He noted that as of 2020, Apple said Maps has “hundreds of millionsusers, while podcasts had approximately 28 million monthly users at the last count.
Prediction 2: Ads will be placed on Apple TV+
Apple’s 10-year, $250 million per season deal to stream Major League Soccer on Apple TV will air its first game in February 2023. In a first for the company, Apple also sells adsas well as other referral integrations.
As Insider previously reported, the most expensive plan starts at $4 million per season for the greatest number of important places.
Chas McCormick hits a two-run homer against the New York Yankees in the ALCS.
AP Photo/John Minchillo
Apple could also extend its advertising pitch to baseball next year. Apple TV+ currently airs Major League Baseball on Friday nights and while the league will continue to sell ads for that show through next season, that could change. He was reportedly in talks for the NFL’s Sunday Ticket, although The Wall Street Journal reported this week that YouTube became the favorite for this set of rights.
And there is also industry speculation that Apple TV could launch an ad-supported planas Digiday previously reported, though Insider experts would be surprised to see a 2023 launch.
“His existing ad technology and technological experience could save him the expense of an expensive ad partner, but since his reach is much lower than Disney or Netflix, he may not be able to take advantage of the trend of higher and higher CPMs,” he said. Daniel Konstantinovic, insider intelligence analyst, in a recent report.
Prediction 3: More details will emerge on Apple’s demand-side platform
As Insider reported in November, Apple has hired mobile advertising pioneer Vishal Gurbuxani to start working on what two sources familiar with the matter described as a demand-side platform.
A DSP is software that helps marketers automate and optimize their ad buying. It could become the key entry point for advertisers looking to reach Apple users through its portfolio of apps and services.
Experts said the DSP is unlikely to offer ad inventory on apps that Apple doesn’t have, at least not initially.
Prediction 4: Apple will look to make an adtech acquisition
While Apple has had an ad search business for a while, it may need to bolster its adtech infrastructure as it expands further into display and video advertising.
“Building adtech isn’t easy,” said Ciarán O’Kane, chief strategy officer at marketing insights firm WireCorp.
“Apple is about to find out how hard it is to run TV ads,” he added, referring to his MLS TV shows. “You can’t just throw something together.”
O’Kane predicted that Apple might be looking for an ad server or other buy-side technology to connect its video and CTV inventory to.
Prediction 5: Apple will quietly tighten privacy screws
After Apple’s follow-up, some companies found restricted workarounds such as “fingerprinting”. It is the practice of assembling information from a device – such as a user’s IP address or language setting – to identify users who clicked on advertisements and potentially build profiles about them.
Areas such as retail media and ad-supported streaming are on fire.
Insider information
Although it’s difficult to track fingerprints, experts believe Apple will improve, just as it has continuously tightened smart tracking prevention on its Safari browser after companies found ways around it.
“History shows that Apple can still iterate and strengthen the technology application,” said Itai Cohen, senior vice president of marketing and strategy at Digital Turbine, a mobile monetization platform.
Prediction 6: Apple will make improvements to its own ad measurement solution, SK AdNetwork
Apple prohibits advertisers and app developers from using its Advertiser ID for targeting and measurement purposes unless users explicitly allow tracking.
Instead of IDFA, Apple offers SK AdNetwork, which offers aggregated, privacy-focused metrics such as the number of users who downloaded an app after seeing an advertisement for it.
SK AdNetwork turns five next year, and with it mobile advertising experts are hoping for improvements, though they’re likely to be iterative, given Apple’s emphasis on privacy.
Roy Yanai, director of product for SK AdNetwork on mobile analytics platform AppsFlyer, hopes for more detailed breakdowns of ad campaigns and aggregate information about user activity.
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