Advertising is not Apple’s lifeblood; it relies more on hardware sales. However, according to a report from Bloomberg’s Mark Gurman, Apple is looking to expand its Ad business and is aiming to bring annual revenue into the “double digits”. The company is projected to bring ads to more of the apps that come pre-installed on the iPhone and other Apple devices, including Maps, Books, and Podcasts.
Gurman claims that Apple has already tested incorporating sponsored results to search results in the Maps app. A similar advertising strategy has been established by the company on the App Store, where developers may pay to have their app promoted on a search page for a specific query.
Apple might potentially add advertisements to its built-in Books and Podcasts apps too. This would make it possible for publishers to add advertisements to specific app areas or pay to boost their content in search results. Books, Podcasts, and Maps are all currently ad-free.
Apple ads revenue currently comes from the App Store Search Ads, ads in Apple News, and a few more sources. The company’s total ad revenue is $4 billion and it is reportedly aiming to triple its ad revenue to double-digit figures.
Gurman also makes reference to the possibility of advertising on Apple TV Plus, he claims that the Cupertino company may decide to establish a less expensive ad-supported tier, similar to what Netflix and Disney Plus are planning to do by the end of this year.
Apple’s smartphone sales have declined significantly in recent years. To counter that, the company has resorted to various revenue-generating services, including ads. While more ads will definitely boost Apple’s revenue, it will also ruin the overall user experience.
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