Sunday, June 16, 2024
HomeStoriesApple is changing the advertising industry and you cannot not know about...

Apple is changing the advertising industry and you cannot not know about it

According to ad industry executives, marketers targeting iPhone users can get more details regarding ad performance if they purchase Apple’s ad space rather than buying from third parties as a result of Apple’s new privacy constraints.
According to ad executives and software developers, the gap could give Apple’s limited yet rising ad company an advantage over competitors.
Apple’s latest iPhone operating system has sparked a firestorm in the advertising industry and beyond by allowing consumers to choose whether or not to allow apps to monitor them for advertising purposes—changes that mean advertisers will soon have less information on who sees their advertisements. Users must provide their consent for apps on Apple’s iOS platform to monitor them for advertising purposes.
Advertisers who have purchased advertisements from third-party sites targeting consumers and have opted out of monitoring will have to wait three days for insights on their efforts and will only collect aggregate data, such as the overall number of users who take an action after seeing an ad, according to people familiar with Apple’s ad products. Advertisers who buy Apple ad space can get more information about user behaviour, according to the sources. According to them, they will discover which versions of their advertisements customers see and which search keywords their ads appeared on.
According to the sources, such marketers can see returns in close real-time.
According to ad industry executives, this could give Apple an advantage in luring advertisers, particularly as the tech giant extends its ad sector. Apple currently offers search advertisements that run in the App Store, as well as show ads that appear in the News and Stocks apps.
An Apple spokesman denied that the company is promoting its brands and said that the data limitations for advertisements purchased on third-party sites are necessary because certain advertisers may use the information to circumvent Apple’s privacy laws to monitor individual consumers. Apple’s marketing offerings, the firm claims, cannot be used in the same manner, and marketers on its sites will only reach vast numbers of citizens.
Apple’s advertising business consists primarily of search advertisements on the app store, which will be unaffected by the upcoming privacy regulations. Those ad placements mostly cater to a select group of advertisers: App makers, who may offer to be at the top of search results.
According to Cowen & Co., Apple’s app-store advertising is predicted to pull in about $2 billion this fiscal year. Apple’s gross sales in the previous fiscal year were $274.52 billion. Last year, Facebook reported $84.17 billion in ad sales.

According to people familiar with Apple’s marketing goods, the company is looking to its ad options and is exploring a new ad slot that would be available in the App Store’s “Suggested” segment and will be tailored based on users’ interests and audience information. Apple’s proposed ad slot was previously mentioned by the Financial Times.
Apple could get higher ad rates even though it doesn’t have enough ad space to sell as the demand for its ad space increases on account of the privacy reforms, says an ad executive. Apple’s scheme has been opposed by Eric Seufert, an analyst,and marketing strategy consultant, who claims that accurate data on ad success is useful to advertisers. So, unless they were only trying to favour their own ad networks, he said, it’s unclear why they would withhold it from advertisers buying through other ad sellers.
The tools behind Apple’s latest privacy controls, according to the company, are intended to help developers enforce healthy advertisement policies and protect consumers, not to benefit Apple.
The changes have been criticized by Facebook Inc., software publishers, and ad-tech companies. Apple may have extended less strict data-use regulations to itself than to other providers, according to France’s antitrust regulator, which has vowed a definitive decision by early next year. Apple said that it looks forward to continuing to work with France’s competition regulator on the issue.
The Company agrees that users’ data belongs to the users only and that they should have power over when and with whom it is exchanged.
Many believe that opponents would fail to contend that Apple’s privacy policies breach antitrust laws because the corporation claims to be inspired by privacy issues and gives users the option of supporting or opposing track. According to ad executives, Apple has the potential to become a major player in the $400 billion global digital-ad industry. The path has previously been taken by the group. It bid on AdMob Inc., a specialist in brokering ad purchases on cell phones, in 2009, but was outbid by Google. In 2010, Apple released its own ad network, iAd, to promote ad purchases in iPhone applications. The company refused to take off, and Apple shut it down in 2016.
According to Chad Engelgau, chief executive officer of Acxiom, the data unit held by ad-agency holding firm Interpublic Group of Cos, Apple almost recused themselves from the advertisement ecosystem a couple of years ago because it was too small, and they had a feeling that it was going to ruin the reputation of their hardware business. They will undoubtedly continue to invest in the advertising industry in the future. They have a degree of autonomy as a hardware producer and a content provider.
In 2018, Apple aimed to broaden its digital advertising business, meeting with big apps such as Snap Inc. and Pinterest Inc. about investing in an Apple network that will spread advertisements through a network of participating apps. However, competing with Google and Facebook on advertisements that feature in cell phone applications will be difficult for the company. Google and Facebook have ruled this industry for years, thanks in part to their comprehensive user information database. Apple has opposed the widespread use of data for ads.

- Advertisment -

Most Popular

Recent Comments