Apple has been greatly using Apple-powered services such as Apple TV, iTunes, App Store, etc. for generating advertisement revenue. But now Apple is planning to extend this ad revenue, especially from iPhones and iPads. But generally, iPhones are seen in the market as privacy-focused devices. Many technology experts consider iPhones to be the most secure devices in terms of user data. So, Apple’s announcement of growing its advertisement revenue by the end of 2022 begs the question, can privacy-focused iPhones generate ad revenues for the company?
Apple has always been a market leader in almost every product category it enters. Apple either brings innovation to the table or completely eradicates the competition by using their most popular product, the iPhones. Apple uses its ecosystem, unlike any other company for providing a seamless experience to its users. But because of this, many startups have failed in the past due to a feature or a service launched by Apple, either separately or through iPhones. iPhone features such as Apple Pay Later, Tap To Pay, Passkey, Freeform, etc., have disrupted the business of over a dozen startups. The biggest company which Apple has ruined through its aggressive strategies is Meta, previously known as Facebook. With the launch of Apple Tracking Transparency in 2021, Apple completely restricted Meta from collecting any user data through Facebook and Messenger apps, Instagram, and WhatsApp. This has seriously impacted Meta’s advertising business. It has also impacted the advertisement business of Google, as Apple does not allow Google apps to collect any user data, which is necessary for Google apps to function as well as they function over Android.
This move by Apple was praised globally as Facebook and Google have been accused of collecting sensitive user data in the background. But with the latest development where Apple has proposed that it is looking to increase its advertisement revenue, many people have raised concerns about the privacy of iPhone users. Many experts stated that through ATT, Apple prevented other companies from using user data from almost 2 billion iPhones sold globally, so that Apple can grow its own advertising business.
Apple is going to increase the inventory places for ads on the App Store, by the end of this year. Currently, the App Store has advertisements in the search tab, where along with the searched apps, it recommends other apps. Based on other services, Apple might introduce ads in the Today, Suggested, and You May Like sections. To display ads in these sections, developers can pay Apple. Based on the user data, Apple can then display the most appropriate apps based on their search terms.
While portraying Apple as a privacy-centered company, Tim Cook, CEO of Apple, said that protecting one's privacy and personal data is the biggest battle of the modern era. With the launch of ATT in 2021, Apple hinted that if you want to secure your privacy among data-hungry companies such as Meta, Google, and Android OEMs such as Xiaomi, Huawei, Vivo, etc., Apple is the only option. But in actuality, it seems like by applying ATT, Apple has helped its own advertisement business, by restricting the competition from iPhones. We have to wait till Apple fully implements its advertisement plans on iPhones. For this, we will at least have to wait till the end of this year. However, 2023 will be the year that will highlight the bigger picture of Apple’s plan of expanding its advertising business. Can privacy-focused iPhones generate ad revenues for Apple?
Yash Ranjan09/15/2022
Apple has been greatly using Apple-powered services such as Apple TV, iTunes, App Store, etc. for generating advertisement revenue. But now Apple is planning to extend this ad revenue, especially from iPhones and iPads. But generally, iPhones are seen in the market as privacy-focused devices. Many technology experts consider iPhones to be the most secure devices in terms of user data. So, Apple’s announcement of growing its advertisement revenue by the end of 2022 begs the question, can privacy-focused iPhones generate ad revenues for the company?
Apple has always been a market leader in almost every product category it enters. Apple either brings innovation to the table or completely eradicates the competition by using their most popular product, the iPhones. Apple uses its ecosystem, unlike any other company for providing a seamless experience to its users. But because of this, many startups have failed in the past due to a feature or a service launched by Apple, either separately or through iPhones. iPhone features such as Apple Pay Later, Tap To Pay, Passkey, Freeform, etc., have disrupted the business of over a dozen startups. The biggest company which Apple has ruined through its aggressive strategies is Meta, previously known as Facebook. With the launch of Apple Tracking Transparency in 2021, Apple completely restricted Meta from collecting any user data through Facebook and Messenger apps, Instagram, and WhatsApp. This has seriously impacted Meta’s advertising business. It has also impacted the advertisement business of Google, as Apple does not allow Google apps to collect any user data, which is necessary for Google apps to function as well as they function over Android.
This move by Apple was praised globally as Facebook and Google have been accused of collecting sensitive user data in the background. But with the latest development where Apple has proposed that it is looking to increase its advertisement revenue, many people have raised concerns about the privacy of iPhone users. Many experts stated that through ATT, Apple prevented other companies from using user data from almost 2 billion iPhones sold globally, so that Apple can grow its own advertising business.
Apple is going to increase the inventory places for ads on the App Store, by the end of this year. Currently, the App Store has advertisements in the search tab, where along with the searched apps, it recommends other apps. Based on other services, Apple might introduce ads in the Today, Suggested, and You May Like sections. To display ads in these sections, developers can pay Apple. Based on the user data, Apple can then display the most appropriate apps based on their search terms.
While portraying Apple as a privacy-centered company, Tim Cook, CEO of Apple, said that protecting one's privacy and personal data is the biggest battle of the modern era. With the launch of ATT in 2021, Apple hinted that if you want to secure your privacy among data-hungry companies such as Meta, Google, and Android OEMs such as Xiaomi, Huawei, Vivo, etc., Apple is the only option. But in actuality, it seems like by applying ATT, Apple has helped its own advertisement business, by restricting the competition from iPhones. We have to wait till Apple fully implements its advertisement plans on iPhones. For this, we will at least have to wait till the end of this year. However, 2023 will be the year that will highlight the bigger picture of Apple’s plan of expanding its advertising business. 
