According to Bank of America analyst Wamsi Mohan, Apple could earn no less than $5.3 billion in advertising revenue over the period from September 2021 to September 2022. A figure that could climb to $9.8 billion two years later (nearly equivalent euro conversion) and mainly from ads on the App Store.
If you don’t know what it is, the principle is the same as on Google. When you search for an app in Apple’s library, promotional inserts may highlight similar content. Brands pay to challenge you in this way, while Apple also takes the opportunity to position itself but for free, which also tends to worry legislators for the sake of competition.
Services before products
Mohan goes even further in his estimates and judges that Apple could reach 20 billion in advertising revenue by 2026. A rise that would be greatly facilitated by a new dedicated platform similar to Facebook’s Business Manager, although no leaks about it have reached us yet.
This information makes sense at a time when 20% of Apple’s revenues now come from services, according to its latest financial results published at the end of April. Within this category, we also find insurance against AppleCare+ screen breakage, the Apple One offer (Apple TV+, Apple Arcade, iCloud+, Apple Fitness+ and Apple Music) or the rental of equipment to repair your iPhone. For comparison, these mobiles are the first vector of turnover for the firm of Tim Cook with 52% of the cake. Macs complete the podium (11%), ahead of wearables (9%) and tablets (8%).
Watch out for confidentiality
Beyond regulators which may slow Cupertino’s progress with the Digital Markets Act, consumers are however very skeptical about personal data issues. This information is essential to offer quality targeting to advertisers, but the group ensures that it is anonymized as best as possible in order to protect our privacy.
Developers, on the other hand, continue to generate more revenue on iOS than on Android and should therefore greatly benefit from this strategy in the future…