Analysts estimate that Apple could generate sales of five billion dollars from advertising in the App Store in 2022 alone.
(Photo: dpa)
san francisco The technology group Apple has informed developers about new ways to advertise their applications on Apple devices. Additional advertising space would soon be activated within the app store, Apple announced on Tuesday in a message to developers, as the Handelsblatt found out. An Apple spokesman confirmed the move to US broadcaster CNBC.
There are currently two advertising slots in the App Store: one in the main Search tab and one in the search results. In July, Apple announced two new ad slots. They are located on the Today app store home page and on individual app pages.
According to Bank of America analyst Wamsi Mohan, Apple is likely to generate sales of around five billion dollars this year just from advertising displayed during searches in the App Store. The investment bank Bernstein estimated advertising sales last year at around four billion dollars. According to the bank’s calculations, advertising sales at Apple in 2017 were only around 300 million dollars. Apple itself does not break down advertising sales in its quarterly figures.
According to Handelsblatt information, Apple is also considering advertising space elsewhere within Apple’s own apps on the iPhone and iPad. In addition to advertising in the App Store, Apple is already playing advertising in the stock market application and in the news app on iPhones and iPads. Media organizations that provide content to the platform also share in the revenue from advertising in the News app. These advertising spaces could also be expanded in the future.
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The move follows a drastic reduction in personalized advertising that Apple implemented with an update to the iOS operating system last year. With the so-called App Tracking Transparency – ATT for short – users can choose whether they want to allow advertisers to display targeted offers. Companies like the Facebook group Meta use this option to create user profiles across individual apps.
Eight out of ten users have limited the use of the data
Many Apple users used the new option to restrict personalized advertising. According to Apple, around eight out of ten users have limited the use of their data using ATT. Advertising-driven corporations such as Meta, Twitter or Snap suffered a billion-dollar slump in sales as a result. Meta alone assumed a drop in sales of around ten billion dollars in 2022.
It is ironic that Apple of all people is now using the situation to expand advertising itself as a new profit driver, wrote Bloomberg journalist and Apple expert Mark Gurman in an analysis. Similar to personalized advertising on other platforms, Apple also uses information such as user data and data stored in the Apple account to decide which advertising is displayed to a user. “It doesn’t look like a privacy-first policy,” Gurman said. The Apple spokesman told CNBC the ads are tightly controlled and follow high privacy standards.
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