Shulou(Shulou.com)11/24 Report--

CTOnews.com, December 24 / PRNewswire-FirstCall-Asianet /-- US investment media Motley Fool today published an analysis by columnist Adam Levy that Apple is vigorously promoting its advertising business and may achieve its long-term goals in the next few years.

Todd Teresi, Apple's vice president of advertising, said earlier this year that he hoped the advertising business would generate billions of dollars in revenue for the tech giant.

This is a big improvement over the estimated $4 billion generated in fiscal year 2021. However, a new estimate by Insider Intelligence shows that by the end of 2024, the company will have annual global advertising sales of $10.7 billion.

CTOnews.com learned that several important factors contributing to the rapid growth of Apple's advertising business were analyzed in this article:

1. Develop more advertising space

Apple established the App Tracking Transparency (ATT) mechanism in iOS 14.5. After iPhone users upgrade to the new version, you can personalize the behavior of various applications in collecting data.

This means that it becomes more difficult for companies like Meta Platforms to track their ad conversion rates and collect important ad positioning data. And ATT also allows advertisers to reduce their advertising on Facebook and Instagram or other social media platforms.

Some of the reduced ads on social media have gone into Apple's pockets. Apple's App Store search ads show higher value after being unable to track the conversion rate of app installation ads on other platforms.

As these ads became more valuable, Apple began to expand its advertising space. Apple began to display ads on more interfaces of App Store apps, such as "Today" and third-party app pages.

Apple also displays ads in stocks and news apps. Apple has considered more places to put advertising products, including maps, podcasts and Apple TV +.

Finding or developing new ad space could be a key part of Apple's future advertising strategy, as it sees a surge in demand for its ads. It is also reportedly developing a demand-side platform for ad buyers to expand its business and make it easier for marketers to automate and manage advertising campaigns for many types of ads that Apple may offer.

CTOnews.com learned that Apple officially wrote in its update log:

Ads sent by Apple may be displayed in App Store, Apple News and "Stock Market". These ads do not access data from any other App. In App Store and Apple News, your search and download history may be used to provide you with relevant search ads.

In Apple News and the Stock Market, advertising is provided partly based on what you read or follow. These include the publishers for which you have enabled notifications, as well as the types of publication subscriptions you have. The articles you read will not be used to provide you with targeted ads outside these App, and the information collected about what you read is associated with random identifiers, not with your Apple ID.

two。 Advertising is becoming more and more important to Apple.

Advertising belongs to Apple's services division, which has quickly become Apple's second-largest business after iPhone.

To be sure, advertising still accounts for only a small portion of Apple's total revenue, which reached $394 billion last year. It is even a small part of the services sector, which generated $78 billion in revenue last year.

But in addition to advertising sold to marketers, Apple has another advertising revenue in its advertising business. Apple also includes the traffic acquisition cost (TAC) paid by Google, a unit of Alphabet, to use Google as the default search engine in Safari and Siri.

These payments are estimated to be as high as $15 billion. Google's total TAC grew by nearly $4 billion, or 12%, in the first nine months of this year, driven by payments to distribution partners.

But Google's payment growth next year or the year after that may not be that big. In times of economic uncertainty, advertisers are cutting back on spending, and while search advertising is a reliable source of sales, those sales may not be sufficient.

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