Apple has conducted internal testing of search ads on Maps. In addition, the company may advertise in its other pre-installed iPhone apps, such as Books and Podcasts.
- What is happening? Apple may add more ads to iPhone, iPad, and Mac in the future. The company has reportedly been internally testing search ads in the Maps app, but the initiative could bring ads to other apps like Podcasts and Books.
- Why care? Apple positions the iPhone as a premium smartphone with a clean interface. There is an expectation among customers that Apple is basically ad-free, which means that no one likes being pestered with ads.
- What to do? You can write to Apple to express your dissatisfaction with the fact that the company seems ready to monetize users through advertising, but this will not change anything. All we can do is hope that Apple doesn’t launch the ad-supported experience.
Who’s ready for a lot more ads on their iPhone?
Apple already runs display ads in the App Store, Stocks, and News apps for iOS, iPadOS, and macOS. There will be two additional ad placements in the App Store – the second ad placement in Today View and the bottom of individual app pages. But that’s not all, there may be even more ads on iPhone and iPad in the future.
According to the latest issue of Mark Gurman’s “Power On”newsletter on Bloomberg, Apple has already conducted internal testing of search ads in the Maps app. Advertisers like restaurants could pay Apple to rank at the top of local listings when users search for specific keywords like “sushi”in the Maps app.
The author suggests that publishers could promote their releases with search and display ads in the Books and Podcasts apps. He even dreams of an ad-driven Apple TV+ program that could offer older shows at a lower price.
It’s unclear how much of this is based on actual chatter rather than speculation.
I believe the iPhone maker will eventually extend search ads to Maps. They are also likely to be added to digital stores such as Apple Books and Apple Podcasts. And TV+ can generate more ads with multiple levels (just like Netflix Inc., Walt Disney Co. and Warner Bros. Discovery Inc. do with their streaming services).
Apple’s advertising business is currently adding about $4 billion in annual revenue.
Apple ads already bring in $4 billion a year
However, as Gurman writes in a newsletter, the company’s management is reportedly looking to increase that number to double digits. “Apple intends to significantly expand its own advertising business over time,”the newsletter says.
Efforts include the Podcasts and Books apps, which currently lack search and display ads. Gurman says the real test will be whether customers are willing to put up with even more ads on their iPhones, iPads and Macs.
Some people may resent Apple for advertising in the News and Stocks apps. After all, the iPhone should be a premium device. Let’s say you shelled out $1,000 or more to buy it, do you want to feel like Apple is squeezing more money out of you just to use its standard features?
This initiative only applies to ads that Apple displays in its own apps. The company has also used ads in third-party apps through its iAd service, which was discontinued in 2016.
It is troubling, however, that advertising group VP Todd Terezi is known to have secured a foothold in Apple’s service department a few months ago.
The advertising business was also highlighted during Apple’s latest earnings call, though not in a positive way. Chief Executive Officer Tim Cook and Chief Financial Officer Luca Maestri said the operation faced some Covid-related hurdles.
However, Cook expressed his commitment to the cause, calling it a “great”tool for app developers. That’s more than Cook said about many of the company’s key initiatives during the call, including AirPods, augmented reality, artificial intelligence, health and fitness services, or the Apple Card.
Gurman didn’t say when Apple might start testing more ads. It’s like a controlled leak, like someone in Apple’s advertising department talking to Gourmet so the company can evaluate how the public can accept more ads on their Apple devices. Read: 3 Ways to Find GPS Coordinates of Any Place on iPhone
Remember when Steve Jobs announced iCloud in 2011, how proudly he promised Apple customers that iCloud would be ad-free?