Apple’s new business plan is to sell ads directly in the Apple store.

Apple's new business plan is to sell ads directly in the Apple store
Apple’s new business plan is to sell ads directly in the Apple store

Apple sent a message to developers informing them that the company would provide more ad “placements” for the holiday season and inviting them to a virtual conference to encourage them to buy these ads. With the launch of these commercials, Apple’s advertising inventory, which is mainly focus on its App Store, has substantially risen. Apple has recently limited its advertising inventory, with just one unit available under the App Store’s Search button and one unit on the page displaying search results. According to a developer who got the invitation and verified it to CNBC, “You may market your products throughout the App Store to reach more users over the holiday season using new Apple Search Ads options.” The message was issue by Eric Seufert, the creator of Mobile Dev Memo.

Where to place Ads ?

Apple did not specify where the new ad spots would appear in its communication to developers. However, the company said in July that it would add an ad unit to the Software Store’s Today tab (the homepage) and a sponsored unit to software product pages under the heading “You Might Also Like.” The communication to the programmers did not include any of these places.

Apple emphasizes its “unwavering dedication” to user privacy. Customers may opt-out of receiving personalized App Store advertisements and prohibit Apple from presenting them in search results depending on their purchase. 78% of ATT consumers do not accept personalized advertisements.

According to Meta, Facebook’s owner, ATT dislikes competition and is solely concerned with itself. Meta predicts that Apple’s move to alter its plans might cost up to $10 billion. As the company’s supply rises, its promotional approach of Apple is being examine.

Apple’s services section reports advertising, App Store, search engine licensing, and online subscription revenues. In 2021, Apple’s income from services will exceed $68 billion. Wamsi Mohan, an analyst at Bank of America, forecasts that Apple Search Ads will generate $5 billion in revenue by 2022.

In 2021, iPhone users will be able to activate Apple’s App Tracking Transparency (ATT) feature, which will enable them to grant app developers a unique ID or not. Users have the option to conceal their identity. Internet marketers cannot determine the effectiveness of their adverts since most iPhone users do not share.

Apple claims the move was taken

Apple claims the move was taken because it prioritizes user privacy. Customers have the option to prevent their account information and purchase history from being use to personalize search results and App Store advertisements. 78% of ATT customers have chosen not to see advertisements, which is comparable to the national average. The owner of Facebook, Meta, claims that ATT opposes competition and just seeks to enrich itself. According to Meta, Apple’s shift may cost $10 billion this year.

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