IPhones to Show More Ads in the Future

Photo Credit: Apple

Apple makes more than $4 billion in advertising revenue each year, but apparently that's not enough for the Cupertino giant. A new report from Bloomberg says that the US phone maker is reportedly planning to put more ads on iPhones to boost revenue.

The report says that Apple wants to grow its ad revenue to "double digits" soon. iPhones already show ads in some stock apps like Apple News and Stocks, but now more will be showing up in the App Store. Apple Maps may start getting ads similar to its biggest rival Google Maps. The App Store is "likely" to have ads in the Podcats and Books section.

Meanwhile, Apple has been pushing back against targeted ads from other apps. In 2021, Apple released a new feature for iPhones called App Tracking Transparency, which lets you choose whether you want apps to show you targeted ads. Most iPhone users used the feature to block targeted ads, posing a major challenge for Facebook, Appleton, Snap and other companies.

Analysts say Apple is in the early stages of building a new mobile advertising platform that will be its next big revenue stream. The company has ramped up recruiting efforts for the ad platform and also had a big presence at the Cannes Lions Advertising Festival in June.

The company's advertising business has been declining for the past few years due to the COVID-19 pandemic. Apple's services business, which is primarily driven by App Store advertising, has seen slow growth for several quarters and consumer spending has also declined. Analysts said: 

Overall, we believe that at least 20% growth for Apple’s overall Advertising segment is attainable over the next few years.