Apple’s Privacy Changes Bolster Ad Profits

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Apple’s services business last quarter earned a record $19.5 billion last quarter, including advertising and subscription revenue. According to Apple’s earnings report from last week, this revenue increases 24% year over year. Overall, the company’s revenue went up 11% to $123.9 billion.

App Store search ads will be the primary source of this group’s growth in most cases.

Unfortunately, Apple doesn’t break out its advertising revenue numbers. Listeners in the United States of Apple Music rose 2.5%, and Apple TV users rose 4% last year. Other services Apple sells, such as paying for media platforms and cloud services, didn’t grow at the same rate that the whole service business did.

Apple made money from its AppTrackingTransparency privacy changes last year. However, publishers and advertisers continue to have a hard time with these changes.

To get the same results as before, advertisers running mobile app install campaigns moved their money to the App Store. They moved their money because so many apps could no longer target and track users.

According to mobile analytics firm Branch, one year later, Apple search ads were responsible for 58 percent of all iPhone app downloads. Apple search ads were responsible for 17 percent of all iPhone app downloads.

Google has also added a “offers” tab to its Play Store. This tab is a place to find sales and free trials of paid apps and deals on digital content like ebooks. It makes sense to add more sponsored app ads, and it could be Google’s answer to Apple’s App Store advertising business.

However, Google doesn’t seem to be worried about possible antitrust consequences. They won’t be making as many significant changes to Android as Apple has done. Advertisers won’t have to use Google Play ads in the same way.

What comes next? If antitrust regulators ignore Apple’s massive growth for too long, they will have to act. Regulations aren’t likely to favor Apple’s iOS 14.5 changes, even though these changes are in the name of privacy. Apple’s own ad business is expected to benefit from the changes.

To read more, visit eMarketer here.

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Barb has worked within the digital advertising and marketing space for over 20 years. Over the years, she found it difficult to find information on the simplest of subjects tied to the digital marketing space, so she decided to embark on a journey to create a space that others may appreciate.

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