Apple is expanding the reach of its advertising business by creating opportunities for companies to place ads within the App Store.
The new ads will be visible even before a user completes a search and are named Search tab campaigns. The ads will let companies create awareness among users by placing an ad in a key location on the platform. Apple's new addition to the advertising business will bring in a new revenue stream for the tech giant.
Apple has priced the ads on cost-per-thousand impressions, and the cost is determined by a calculation of what the next closest bidder is willing to pay. Apple also indicated that an impression is counted when more than half the ad is visible to a user for at least one second.
Mobile Ad Services
Apple Expanded Its Advertising Business with New Ads in the App Store
Trend Themes
1. In-app Advertising - As more companies move towards in-app advertising, there is the opportunity for developers to create more innovative ways to integrate ads into apps.
2. Cost-per-thousand Impressions - By pricing ads on cost-per-thousand impressions, there is the opportunity for companies to create more targeted and effective advertising campaigns.
3. Non-google Ad Placement - With Apple’s introduction of non-Google ad placement, there is the opportunity for other ad networks to compete with Google’s ad services and potentially disrupt the market.
Industry Implications
1. Mobile Advertising - As mobile advertising continues to grow, there is the opportunity for companies to develop new and innovative ways to reach consumers on mobile devices.
2. App Development - With the new in-app advertising opportunities, there is the opportunity for app developers to focus on creating apps that are more ad-friendly and better for advertising integration.
3. Tech Advertising - With Apple’s expansion into advertising, there is the opportunity for tech companies to make advertising a core part of their business model and potentially compete with traditional advertising agencies.