In his recent newsletter, ‘Power on’, Gurman said that Todd Tersei, VP of Advertising Platforms at Apple, aims to expand the ad business to drive double-digit revenue, up from the current $4 billion in annual revenue. And Apple is well on its way to bringing those numbers back by putting ads inside some of its other apps.
Gurman suggests that the ads could come to other first-party apps like Maps, Books, and Podcasts. Furthermore, Apple may also start serving more ads inside the App Store and TV+.
How the ads on Iphone may look like
Based on Gurman, the Cupertino giant tested a placement similar to App Store search ads. So when searching for a local restaurant, store or business, Apple Maps will show suggestions at the top of the search results. And like developers, businesses will pay Apple to appear at the top of results.
The App Store, which already has quite a few ad placements, could get some new placements to boost revenue. Gurman and many other publications believe that the Today tab and individual app pages will soon show you recommendations or ads for new apps. Not so, the ad will also expand to the ‘You may also like’ section.
Another app where you might start to see more ads in the future is Apple’s TV+ app. So for now, TV+ only shows ads during Friday Night Baseball live streams. However, Apple can offer different tiers with a cheaper ad-supported tier.
Advertising is becoming an important part of Apple’s revenue year after year. However, it remains to be seen whether Apple will ever re-enter the third-party ad business since the iAd debacle.