According to a new report from Bloomberg, Apple is reportedly looking to expand its ads business and triple its revenue share.
Ads is a (sort of) new business for Apple. Currently, the company shows sponsored ads only in a handful number of areas of the App Store, such as search results and the homepage. An estimated $4 billion in revenue is generated each year by this and other areas where Apple displays ads.
It is now believed that the ad group’s VP, Todd Teresi, wants the revenue to increase to the double digits. According to reputed Apple leaker Mark Gurman, the company is already testing sponsored results in the Maps app. The test is reportedly very similar to Apple’s App Store Ads program. Moreover, the report also claims that the program could also expand to Apple Books and Apple Podcasts in the future.
The move comes as Apple looks for more ways to increase its revenue. As seen in the company’s most recent financial quarter results, the services sector is seeing huge growth. However, hardware sales have slowed down over the course of the past few years. Therefore, ads could become a helping hand in improving revenue.
Apple has been criticized for expanding its own ad business while obstructing other companies from using traditional methods to display ads in apps. Moreover, if Apple inserts ads into the user experience of its devices, it also risks the premium brand reputation it has built so far. It is, however, the direction the company is reportedly moving in.
Source: Power On