Apple to introduce more ads on pre-installed iPhone apps: report
Apple and its history with advertisements
The Cupertino company has had a bit of a mixed relationship with ads. In 2010, Steve Jobs, the former CEO and co-founder of Apple, announced a service called iAd – a third-party advertising division similar to Google Ads. However, while Apple invested more in hardware-related revenue, its iAd service never particularly took off – and the third-party advertising division was shut down internally in 2016.
More recently, in April last year, Apple introduced a feature called App Tracking Transparency (ATT). Instead of serving third-party advertisements, ATT is a measure to prevent services from tracking you within apps and across the internet, thereby preventing third-party advertisements from working effectively. The move drew widespread protests from Meta (then Facebook) – which ran full-page ads in newspapers and explained how Apple’s move would destroy the revenue and revenue models of thousands of people. small businesses around the world.
These thousands of small businesses, according to Mark Zuckerberg, have relied on user tracking to deliver effective ads. Removing the usage tracking portion was extremely detrimental to third-party ads, according to Facebook. However, of course, Facebook itself has lost billions of dollars in ad-supported revenue due to Apple’s ATT enforcement.
How these ads might work
So it’s a bit ironic that Apple itself is looking to go deeper into serving ads to users on its own services. Gurman argues that Apple devices are considered high-end hardware, which already charges more than the average price of devices in the industry. As a result, users may feel aggrieved that even after paying a premium for hardware, Apple would still want users to see ads.
That’s not all – in addition to premium hardware, Apple also charges fees for its services, such as News+. Users still see ads on the service despite paying for a subscription feature, which goes against industry-accepted models of ad-supported “freemium” services or funded “premium” services. by subscription.
Apple, however, might consider a feature rollout where it doesn’t track users across all of its services. In simpler terms, an ad on Apple TV would not know your content preferences on Apple News or Arcade. All preference-based ads would apparently be limited to a user’s viewing or playback preferences within an app itself. Publishers can also get a share of the advertising revenue that Apple would earn, but there are no details on that at this time.
Going forward, it will be interesting to see how Apple rolls out such a service. However, it is likely to face user and industry criticism – after all, running your own ads after restricting those of others could be a contentious matter to deal with.