As iAd Shuts Down, Apple May Be About to Get a Shot of Advertising Redemption

Apple’s iAd App Network, which debuted in 2010 as an ads developer platform for the company’s iPhone, iPod Touch, and iPad devices, is officially shutting down on Thursday. Taking its place in the minds of industry watchers will be the Apple Store’s app-install ads, which some beta users will start seeing in their search results for the first time this summer. Others will likely begin noticing them after a larger expected rollout this fall.

Could the new ads give Apple a shot of redemption? The endeavor will certainly be challenged.

App-install ads have long been vital to the revenue streams of Facebook, Twitter, Google, Instagram and Yahoo. They were particularly important to Facebook turning around its post-IPO earnings slump a few years ago. It’s now a multibillion-dollar business for CEO Mark Zuckerberg’s company. So it’s no wonder Apple CEO Tim Cook wants his brand to get a meaningful piece of the market, which represented $3 billion in ad spending last year, per eMarketer, and will generate nearly $7 billion annually by the end of 2019, according to Business Insider’s BI Intelligence.

And thanks to the huge popularity of the iPhone, the Apple Store seems to be one of the best places to run such ads. Downloading apps, after all, is why folks are in the store.

“App store search is more often the place consumers are going to browse apps with the intent to purchase. It’s more self-selecting interest versus prospecting, which is more closely tied to social media placements,” Davis said.

Meanwhile, PMX’s Davis also believes Apple’s move into the app-install-ad space could be a response to Google’s launch last month of Universal App Campaigns, which let advertisers tap into audiences across the search giant’s platforms.

“[Apple needs] to provide app owners with an advertising vehicle similar to Google’s offer,” she said.

Read the full story here in Adweek.

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