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Apple triples ad revenue with a flawless technique: tripping its rivals

Apple has already managed to dodge many bullets: the last one, the one that has managed to win the litigation against Epic Games for the control and conditions of the App Store on the iPhone. Less known is the history of its advertising platform Yes, Apple has its own ‘Google Ads’, which has been growing dramatically in recent months.

An analysis by the Financial Times reveals how revenue from Apple’s Search Ads platform has tripled in the last six months. How could it happen? Easy: Apple has tripped rivals like Google and Facebook, who have very difficult to use advertising aimed at consumers of Apple products. In other words: if you want to put an ad on iPhones or iPads and have it seen by the demographic profile you want, they are lentils: either you use Search Ads or you have it raw.

Trip over here, trip over there

The Financial Times article was supplemented yesterday with a thread on Twitter from its author, Patrick McGee. In it he explained how Search Ads is “eating” the advertising market for iOS devicesYour quota there for paid ads is 58% according to data from Branch, an American financial consultancy.

Income

How has Search Ads managed to grow in this way? The answer lies in the way Apple treats its competitors on iOS: according to McGee “the rest of the industry is ‘blind’ in the iOS universe‘. Targeted advertising, which is the one that most interests many advertisers, it doesn’t work well if you don’t use Search Ads and you want that post on iOS devices.

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That has caused Search Ads to have grown 69% on iOS devices since June, while its rivals have fallen on average 43%. Apple’s speech in recent times is closely linked to the protection of user privacy, and in fact a few months ago it announced its measures clearly aimed at limiting the collection of Facebook data on iOS devices.

As explained in FT, since April the data that arrives when people interact with advertising no longer reaches advertisers in real time: when users disable this data collection, they cause that Facebook, Google, Snap, Yahoo or Twitter go “blind”.

This was explained by Grant Simmons, from the analytics company Kochava. Before, the data that was collected was granular and arrived in real time: now They take up to 72 hours to arrive and they do it in aggregate form, something that is not so valuable for advertisers. Of course, Apple’s platform provides real-time, detailed information to advertisers when they use Search Ads.

Analysts see that push for privacy as a clear cause of Search Ads growth. According to Evercore ISI, that “has significantly altered the landscape [publicitario]”.

Via | Financial times