Samik Chatterjee of JP Morgan believes Apple could generate up to $6 billion in revenue from mobile advertising in 2025. The mobile advertising market itself is expected to break the $400 billion mark in 2024. That value would represent a 33% jump from the 2021 value that landed just shy of $300 billion.
Why Apple, and Why Now?
With the release of iOS14 Apple introduced App Tracking Transparency (ATT). This change caused the Facebook advertising landscape into a tailspin to the degree of about $10 billion, with other advertising platforms seeing similar drop-offs. Skeptics wonder if this was a planned maneuver by Apple to capture the marketing arena its products have offered other tech giants over the years.
In June Apple released a new pricing model (Cost Per Tap) for its search campaigns. The new model more closely reflects Google’s Cost Per Click model and is set to replace Apple’s current campaign price model.
Why We Care
As of now Apple has not released plans to expand to an audience network, but it certainly is well within their reach. With a network of users as large as Apple’s, the sky is the limit in terms of how much of the mobile ad space they can dominate.
It’s important to note the implementation of iOS14 didn’t stop Apple from collecting our data. What it does is prevents them from sharing that data with their competitors. What on the surface appears as a gesture of protecting its users’ privacy may just be the first step towards a calculated attack on the digital ad landscape. With over 1 billion users, Apple certainly has the means to make a sizeable dent, if not take over the global ad space.
