Apple looks to expand advertising business with new ad network for apps

Apple Inc. “is looking to expand its digital-advertising business, people familiar with the matter said, as it shifts its growth strategy beyond selling devices toward pushing services on them,” Tripp Mickle and Georgia Wells report for The Wall Street Journal. “Over the past year, Apple has met with Snap Inc., Pinterest Inc. and other companies about participating in an Apple network that would distribute ads across their collective apps, the people said. Apple would share revenue with the apps displaying the ads, with the split varying from app to app, they said.”

“The move would expand on Apple’s current small-but-growing business selling promotional ads for search terms in its App Store, which delivered nearly $1 billion in revenue last year, they said,” Mickle and Wells report. “Under the concept discussed internally and raised with potential partners, users searching in Pinterest’s app for ‘drapes’ might turn up an ad distributed by Apple for an interior-design app, or Snap users searching for ‘NFL’ might see an ad for a ticket-reseller app, one of the people said.”

“Apple failed in its last advertising push. Its iAd service, launched in 2010, sold ads within mobile apps on iPhones and iPads but failed to catch on because it charged higher prices than competitors and restricted the types of ads marketers ran,” Mickle and Wells report. “Apple shut iAd in 2016. Todd Teresi, who oversees the ad business, refocused on the App Store ad business. While the business is small, its wide profit margins and strong performance have drawn attention from Mr. Cook and Senior Vice President Eddy Cue, a person close to Mr. Teresi said.”

Read more in the full article here.

MacDailyNews Take: We’ve heard no complaints about Apple’s App Store search ads to date. Have they bothered you?

SEE ALSO:
Apple’s App Store revamp: Ads are coming – June 9, 2016
Apple revamps App Store, may not win over all developers – June 9, 2016
Gruber: Apple’s App Store changes likely to spawn slew of professional-caliber iPad apps – June 8, 2016
Apple to reveal App Store 2.0 at WWDC: New subscription model, search ads, and more – June 8, 2016

13 Comments

  1. Nope, not at all. The ads don’t take up half the screen thus slowing down my browser. They don’t try to force me to another app to download a game. Nor do they attempt to download a fake version of Flash. Know what I’m saying, MDM?

    Just like any ads I just ignore them.

      1. Tabular,
        I understand sites need ads to pay their bills, I have no problem with that. What I hate are the ever increasingly intrusive ads.

        Ads that flash, auto play video ads, ads that force you out of your current app to the App Store, ads that mine crypto currencies, ads that pop-up or pop-under, ads that auto download fake plugins etc, etc.

        1. Fine list that I agree with 100%.

          The most annoying for yours truly as you stated are videos playing that I did not enable (tap to play) while I’m listening to music on my headphones. Number two taking me to the friggin’ App Store without my authorization?

          There should be a law to regulate these money grab intrusions on my time that I did not agree to …

          1. Goeb is talking like a liberal with the demands for regulation. Of course there are no real conservatives left. If there was, there would be term limits and balanced budget amendments passed.

            1. Wow, you made me chuckle, thanks.

              Not talking either liberal or die hard conservative. As a fierce independent all my life, hard to believe right? Let’s look at it this way. Either you have regulation or you don’t (anarchy).

              Regulation is not one EXCLUSIVE flavor. Ranges from totally benign and sensible to overbearing all consuming totalitarianism.

              Here is what I advocate: I signed up for the “do not call” list to avoid daily unnecessary intrusions on my phone. It would make perfect sense to come up with a different flavor to address daily unnecessary ad intrusions on my phone or computer surfing the web, no? …

    1. Ignore them too however, nothing says the way they are today is the way they will stay. Apple will continue to push the buttons until they begin to piss people off just like everyone else.. NOT looking forward to that.

  2. With Google, you pay for your stuff with your data.
    With Apple you pay a premium to not pay with your data. What you say….?
    A slice of soul too?

    Sounds like the worst of both worlds to me.

    1. Remember when cable TV was introduced, they explicitly promised that because you paid a subscription, content was ad free. But the insatiable greed crept in, so now for ALL media, the consumer is expected to pay AND endure the adverts. This website is a shining example.

      The minute Apple puts ads into any of their software or services, they are dead to me. We pay a premium for Apple to deliver a premium experience. Once that trust is broken, there will be no reason to buy Cook’s emoji laden crap.

  3. I have one Android phone for outdoor use, but the number of ads is the most anoying expeiencw of this phone. I dont want this on my regular iPhone.

  4. Hypocrisy can provide humor at the same time that it results in frustration. There is a subgroup of people who incessantly rant against regulations, asserting that the free market will take care of things to the greater benefit of all. Many of these same people go running to the government for relief and regulation when their personal interests are at stake.

    I believe in personal responsibility. I believe in the minimum practical degree of government. I believe in the rule of law tempered by human judgment and compassion. And I believe that hypocrites should suffer the results of their actions, because it does matter even when it is happening to someone else.

    The free market is wonderful in some respects. But it does trend towards excesses – excess risk, excess of greed, excess of corruption – and voids – lack of long term perspective, lack of interest in the greater good, etc. In the absence of reasonable rules and regulations, the free market will devolve into a nasty, corrupt, greed-driven system that will mine your grandparents molars for a fragment of gold filling. A free market needs behavioral norms and limits.

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