Apple Search Ads Grows Amid Application Tracking Transparency Push

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Apple’s internal advertising arm, Search Ads, appears to benefit from Apple’s privacy policy in 2021, with the company increasing its market share at a time when rival ad companies struggle to target advertising at potential customers.

Apple’s introduction of app tracking transparency certainly had an impact on the advertising industry, leading to an immediate drop in revenue for an industry that relied on tracking ad viewers between apps and websites. Months later, it looks like the changes have been good for Apple’s bottom line.

According to mobile marketing analysts speaking to the Financial Time, Apple’s Search Ads have seen a dramatic increase in usage, becoming responsible for 58% of all iPhone app downloads, up from 17% a year ago. In terms of revenue, it is estimated that Apple could earn $ 5 billion from advertising in 2021, rising to $ 20 billion per year within three years.

“It’s like Apple Search Ads has gone from playing in the minor leagues to winning the World Series within six months,” said Alex Bauer, director of product marketing for Branch. Meanwhile, Evercore ISI researchers say Apple’s privacy initiatives have “dramatically changed the landscape” of online advertising.

Apple’s ATT program, which excluded users from online advertising, is believed to have let rival companies operate “blindly,” said Grant Simmons of ad analysis firm Kochava. While advertising companies are stuck with a 72-hour delay on advertising data, which is also only provided in aggregate form, Apple’s own advertising service is said to offer a higher level of detail.

This disparity led an anonymous mobile advertising executive to claim that Apple had “given itself a free pass” because it is “not subject to the same policy as all other ad networks.”

Additionally, Chris Stevens, Marketing Director of SpotHero, says the ad system’s ability to focus ads on users did not correlate with Apple’s privacy rhetoric, such as the “retargeting” tool. used to allow businesses to track users for future re-engagement. .

Apple has also been “unable to validate” that its system complies with Apple’s own policy, Stevens added. “Despite multiple requests and trying to get them to confirm that their products conform to their own solutions, we are unable to do that.”

In a statement to the report, Apple insisted its privacy features are aimed at protecting users. The technologies are part of a comprehensive system designed to help developers implement safe advertising practices and protect users – not to Apple’s benefit, ”the company said.


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