Apple’s in-house advertising arm, Search Ads, appears to be taking advantage of privacy changes in 2021 as the business grows in market share at a time when rival advertising firms are having trouble targeting advertising to potential customers.
Anddoubled The company’s internal advertising arm more than tripled its market share in the six months after it introduced privacy changes across iPhones that hindered competitors, including Facebook, from targeting ads to consumers.
The internal business, called Search Ads, offers sponsored places in the App Store that appear at the top of search results.
Branch, a platform for measuring mobile marketing effectiveness, said Apple’s internal business is now responsible for 58 percent of all iPhone app downloads that result from clicking on an ad. While its share a year ago was 17 percent.
The app advertising market is large and rapidly growing. AppsFlyer, another analytics firm, estimates that mobile app marketing spend for both the iPhone and Android phones reached $58 billion in 2019. It could double to $118 billion by next year.
Meanwhile, Apple is likely to earn $5 billion from its advertising business this fiscal year, and $20 billion a year within three years, said researchers at Evercore ISI, who said the privacy changes have dramatically changed the landscape.
Advertising with Apple became more attractive after the company said that users are being excluded from ad tracking by default, a move that hurt competitors such as Facebook, Google, Snapchat, Yahoo and Twitter.
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Apple’s market share in app ads doubled
Data on how users respond to ads is now delayed by up to 72 hours and is only available in aggregate. And that after it was arriving in real time and accurately.
By contrast, the iPhone manufacturer provides detailed information to anyone who subscribes to its advertising service. Apple has given itself the power because it is not subject to the same policy as every other ad network.
EasyPark is one of the apps that has doubled its spending with Apple since April. The brand’s head said the strategy resulted in the highest ad conversion rate. The efficiency of reaching iPhone customers via Google was affected, and thus we reduced our budget.
In a statement regarding the report, Apple insisted that its privacy features are intended to protect users. The company said the technologies are part of a single comprehensive system designed to help developers implement safe advertising practices and protect users. Not for Apple.