In his recent newsletter, ‘Power On,’ Gurman says that Todd Tersei, VP of Advertising Platforms at Apple, aims at expanding the ad business to increase the revenue to double digits, up from the current $4 billion annual revenue. And Apple is on the way to bringing in those numbers 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. Moreover, Apple could also start serving more ads inside the App Store and TV+.
How the ads on iPhones may look like
According to Gurman, the Cupertino giant has tested a spot similar to the App Store’s search ads. So, when searching for a restaurant, store, or local business, Apple Maps would show recommendations at the top of the search result. And like developers, businesses will pay Apple to appear at the top of the results.
The App Store, which already has quite a few ad spots, might get some new spots to boost the revenue. Gurman and multiple other publications believe that the Today tab and individual app pages will soon show you recommendations or ads for the new apps. That’s not it, ads will also expand to the ‘You Might Also Like’ section.
Another app where you could begin to see more ads in the future is Apple’s TV+ app. So currently, TV+ only shows ads during the Friday Night Baseball livestream. However, Apple could offer different tiers with a cheaper ad-supported tier.
Advertisements are becoming a huge part of Apple’s revenue year over year. However, it remains to be seen if Apple would ever enter the third-party advertisement business again since its failure with iAd.
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