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Apple’s advertising revenue growth; The Cupertinos were accused of evading the law

Recently, there have been many signs that Apple’s ad business is growing rapidly, suggesting that the company intends to turn it into a major source of revenue. While a lot of money can be made in the world of advertising, some accuse this company of doing a complete U-turn in this area and even with a Machiavellian-level conspiracy, it wants to take market share from companies like Google and Facebook.

If you are not familiar with the term Machiavellianism, this term actually refers to political, philosophical and social ideas. Niccolò Machiavelli, the Italian politician and philosopher, points out. For four centuries, this worldview has been synonymous with the concepts of malice, cruelty and betrayal in the minds of the people of the world. The owner of this school is known as the epitome of calculating politics, whose philosophy is: “The goal justifies the means.”

According to the report 9to5MacApple has quadrupled its hiring for advertising roles in the past few years, and one research group has announced that the company’s advertising business will be worth $30 billion a year by 2026.

Background

Apple has never been against advertising. Actually, Steve Jobs In-app advertising is a win-win for customers and developers alike, with the ability to monetize free apps. However, the ad business has never been a big part of Apple’s revenue generation. The advertising income of this company during the time of Steve Jobs was only a few hundred million dollars per year; A figure that is now estimated at around five billion dollars per year and is growing rapidly.

In July, we saw other signs of Apple’s efforts to make more money from advertising. The brand ran ads in the Today section of the App Store and in August hired a new senior advertising manager for its services department. After that, Bloomberg reported that Apple is planning to show ads in Apple Books and Apple Podcasts.

These events happen while Apple made it more difficult for other advertising platforms by introducing transparency in iOS app tracking some time ago. This made it harder to get the data needed to sell personalized ads to companies like Google and Facebook; Ads that will generate more revenue for advertising platforms compared to regular ads; Because by using them, ads can be shown exactly to the audience that needs it.

Investigations into violations of anti-competitive laws are ongoing; Because although Apple asks third-party apps to get permission from the user to track ads, it doesn’t do this in its own apps.

Apple’s advertising jobs are hiring fast

The Financial Times reported that Apple’s advertising hiring rate has nearly quadrupled since 2020. The company plans to significantly increase the workforce of its growing digital advertising unit less than 18 months after implementing sweeping privacy changes that challenge its larger rivals in the lucrative industry.

According to LinkedIn, Apple has about 250 people on its ad platforms team and is looking to hire 216 more roles in that area, nearly four times the 56 positions it had in late 2020, according to its jobs website. It should be noted that this company disagreed with the announced figures; But he did not provide further explanation about it.

Currently, many criticisms of Apple’s creation of an advertising business come after making the working conditions more difficult for its competitors, including app developers, who will earn less money if users opt out of ad tracking.

Alex Austin, The executive director of Adtech Group said:

It is usually impossible to build new advertising systems to compete effectively with existing companies that have tens of thousands of employees and 10-20 years of experience; Unless you can somehow make them lose on your platform.

Others claim that the privacy debate is just cynical preparation for Apple’s own plans to capture a larger share of the digital advertising market. Critics say Cook is doing a U-turn on advertising policy.

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David Steinberg, CEO of marketing technology firm Zeta Global, says Apple is being Machiavellian and brilliant by adopting privacy rules that force competitors to rebuild their ad infrastructure, while also creating an opportunity for itself to fill the void. He also stated:

Apple can significantly expand its advertising business, and the company’s coverage is what protects consumer privacy.

Additionally, there are concerns that Apple could damage its customer base. Claire Atkinone of the founders of Check My Ads says:

Currently, using Apple phones is safer than Google phones in terms of regulatory economy; Because the people of Mountainview have designed their products to provide monitoring services, while the Cupertinos are not advertising companies at their core. It should be said that if the iPhone manufacturer suddenly enters this field, there will be no competitive advantage.


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