Analyst: Apple’s App Store ads could be a $2 billion business by 2020

“Apple’s Search Ad business could generate over $500 million in revenue this year and quadruple that to $2 billion by 2020, Bernstein analyst Toni Sacconaghi claims,” Lauren Feiner reports for CNBC.

“Apple’s Search Ads appear at the top of App Store pages, marked by a blue tint and ‘Ad’ marker,” Feiner reports. “App makers can buy specific keywords they want their app ads to appear next to, similar to the way Google search ads work on the web.”

“Sacconaghi said his estimate that Apple could approach $2 billion in Search Ad revenue by 2020 was ‘conservative’ in note published Monday,” Feiner reports. “The development means that Apple is likely to meet or exceed its goal of doubling its Services revenue by the end of 2020 to $49 billion.”

Read more in the full article here.

MacDailyNews Note: $49 billion annual revenue this year would place Apple’s Services business 61st on the Fortune 500, right behind AIG and Lockheed Martin.

7 Comments

  1. So apple is putting ads in the app store now? Really, they don’t make enough front the app store already so they need more?

    I’m hoping I got this wrong

    1. You do understand the fundamentals of capitalism right? I’m a bit of a socialist but I do recognise that Apple is anything but and thus accept it on that basis.

      1. Yea. I get it well, I live in it. This was posted to see how many people would defend apple with a song and dance. But thanks for showing you see yourself as way smarter than others. I’ll remember to not respond to you again.

  2. Timbo never signed up to do no evil. He just claims he won’t sell you out …. unless there is a warrant, you live under a totalitarian govt, or Google pays billions for the search default. Then your data is given away for free.

  3. I hate advertising and I really hate intrusive advertising. Ads on the App Store would be intrusive.
    Why not just take a chunk of screen on every device and sell ad space, Tim?

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