Apple is preparing to introduce search-based advertising in its Apple Maps app, marking a significant expansion of its services business and bringing the navigation tool closer to the monetization model long used by rival Google Maps, Mark Gurman reports for Bloomberg News.
The company plans to allow retailers and brands to bid for prominent ad slots that appear in response to user search queries, such as for restaurants, bars or stores. The ads will show up as top results in the Maps app, Gurman reports citing people familiar with the matter. An official announcement could come as soon as this month, with the feature potentially rolling out to users this summer.
The move is part of Apple’s ongoing effort to grow its high-margin services revenue, which includes the App Store, Apple Music, iCloud and advertising. Services have become an increasingly important part of the company’s business as iPhone sales growth slows in mature markets.
Apple Maps has historically avoided ads to differentiate itself from Google Maps, emphasizing privacy and a cleaner user experience. However, the company has gradually expanded its advertising footprint in recent years, including search ads in the App Store and other placements across iOS.
MacDailyNews Take: The new feature will operate similarly to Google’s system, where businesses compete in auctions for visibility tied to specific search terms. While the change could boost Apple’s services income, it risks drawing criticism from users who have come to expect an ad-light experience from the company’s apps.
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