IN BRIEF
|
For decades, Apple has been synonymous with innovation and disruption in the technology sector. As the company continues to evolve and refine its strategy, the question arises: Can Apple surprise everyone and take over the advertising world? With a loyal user base and unrivaled expertise in design and user experience, Apple is positioned to explore new advertising horizons. By integrating creative solutions and advanced technologies, the Cupertino firm could not only redefine advertising standards, but also establish an economic model that would shake up already well-established players in the sector. In a constantly evolving world, the possibility of Apple soaring to new advertising heights is not only captivating, but also highly plausible.
Apple’s maneuvers in the advertising sector
The sector of digital advertising has found itself shaken up in recent weeks by the maneuvers of the tech giants. In particular, Google reversed its plans regarding third-party cookies in Chrome, plunging the advertising world into uncertainty. However, a silent threat looms on the horizon: Apple, known for its quiet but decisive approach, is preparing major changes.
Apple’s privacy strategy
Apple is no stranger to privacy private life of its users. The introduction of Intelligent Tracking Prevention (ITP) in the Safari browser is striking proof of this. Recently, with the deployment of the functionality of Distraction Control In iOS 18, Apple allows users to hide distracting elements, often including ads. While this is not explicit ad blocking, it inevitably hinders publishers’ monetization efforts.
Alternatives considered by Apple
The recent antitrust lawsuit against Google could force Apple to abandon its $20 billion-a-year deal to make Google the default search engine on its devices. Analysts such as Erik Woodring of Morgan Stanley believe that Apple could explore other paths of monetization such as:
– Introduce a choice screen in Safari, pushing search providers to bid for favorable positions.
– Renegotiate with Google and other partners to get better terms.
– Structuring voice search contracts to collect TAC (Traffic Acquisition Costs).
Apple on the offensive in the TV advertising sector
Apple also appears to want to encroach on the growing advertising ambitions of platforms like Amazon and Netflix. According to recent reports, Apple has met with TV audience measurement organizations in the United Kingdom to discuss options for advertising tracking. This approach is reminiscent of the efforts of its leaders to push an advertising product similar to TV in the United States.
The share of advertising in Apple’s overall strategy
Currently, Apple’s advertising business generates nearly $6 billion in revenue, with projections reaching $8.5 billion by 2026. While that figure is still far behind Amazon or the Google-Facebook duopoly, that could change . Apple is known for its secrecy, but according to Paul Verna, an analyst at eMarketer, « Everyone is waiting for Apple to do something big. »
Strategy | User Privacy and Distraction Control |
Effect on advertising | Blocking disruptive elements, including advertisements |
Alternatives considered | Renegotiation of search agreements, choice screen in Safari |
Antitrust | Potential waiver of the agreement with Google |
TV advertising ambitions | Discussions with television audience measurement organizations |
Market share | Advertising revenue expected to increase to 8.5 billion in 2026 |
The challenges of dominating the advertising world
- Intense competition with Google and Facebook
- Need for continued privacy innovation
- Renegotiation of lucrative agreements with partners
- Expansion into new advertising formats, notably TV
- Potential reactions from publishers and advertisers
FAQs
Can Apple really surpass Google and Facebook in advertising revenue?
Analysts believe that with strategic maneuvers, Apple could significantly increase its advertising market share, although this remains a major challenge.
What are the main obstacles for Apple in the world of advertising?
Apple faces intense competition, renegotiates lucrative deals and overcomes publisher backlash over its new privacy features.
How does Apple use privacy to stand out in advertising?
Apple integrates features like Intelligent Tracking Prevention and Distraction Control to limit ad tracking and appeal to its privacy-conscious users.
What alternatives does Apple consider if the deal with Google is canceled?
Apple could introduce a choice screen in Safari and renegotiate with other search providers to optimize its revenue streams.
Could Apple Succeed in the TV Advertising Business?
With ongoing discussions with audience measurement organizations, Apple seems to be preparing its entry into the television advertising market, but this will require time and adaptations.