Apple is reportedly planning to ramp up advertising on the App Store and Apple Maps.
In the latest Mark Gurman’s Power On newsletter, the reliable insider reports that Apple’s VP of Advertising Platforms, Todd Teresi, wants to increase revenue in the “double digits” – it currently stands at around $4 billion per year, so a change would result in growing the sector by 2.5 times, a significant feat and something that Apple is reportedly keen to execute.
According to the report, Apple has begun testing new sponsored results in the Maps app as a new way to increase sales, and the firm could even add ads to the Podcasts and Books apps, too.
Right now, Apple’s generating ad revenue from App Store search ads, Apple News ads, and commercials from MLB Friday Night Baseball streams. Introducing these new revenue streams could significantly increase revenues for the company.
The firm has already confirmed plans to add new ad units to the App Store from iOS 16.
The news will no doubt be a surprise to some, who prefer Apple’s platforms because of their lack of ads. Introducing ads to more stock apps could make the iOS platform less attractive and perhaps even cause some regulatory issues as a result, especially at a time when Apple’s facing a number of anti-trust lawsuits due to its unfair competitive advantage in many spaces.
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