Apple is a business, so its ultimate goal is growing and maximizing its profits. At first, the Cupertino firm was mostly focused on selling its hardware and software. At some point, it entered the subscription services field with a wide range of paid offerings. This acts as an additional revenue stream that builds upon its hardware sales. For the longest time, the company’s dependence on ad revenue has been minimal. After all, the corporation typically sells high-end devices for expensive price tags. By refraining from the aggressive use of ads, its customers feel like they’re truly getting a premium experience. However, we recently learned that Apple could be aiming to more than double its ad revenue. It seems like its new strategy could start affecting users as soon as 2023.
I believe the engineering work is already underway to launch search ads in the Apple Maps app, and we should begin to see it be implemented sometime next year.
In his Power On newsletter, Bloomberg’s Mark Gurman has stated that Apple could be injecting ads into its Maps app next year. Right now, the Cupertino overlord’s ad division is generating around $4 billion annually. Apple reportedly wants to increase that to at least $10 billion per year. The new tactic could mean users having to see ads in more of its built-in apps, such as Maps, Podcasts, etc.
The ads in Apple Maps — which users could start seeing in a few months — likely won’t be in the form of banners. Instead, the company might allow businesses to pay money for top slots. This way, when users search for a certain restaurant, paid places appear in top results as ads. By doing so, Apple is ruining the user experience to make an extra buck.
By sacrificing its user experience for the sake of ad revenue, do you think Apple will make more money or lose customers? Let us know in the comments section below.
Source: Bloomberg’s Power On Newsletter