Apple is a multinational technology company known for its hefty-prized consumer electronics. But that doesn't mean it cannot have other sources of revenues.
As a tech company, Apple also gets revenue from every single app purchase users make. And among others, Apple also charges users for using its iCloud services. And this time, the company is increasing its advertising presence on the App Store, as it tries to increase revenue for its ad business.
Apple confirmed this in an email with developers.
The primary areas that the increased ads is visible, is within the main 'Today' page, where Apple features certain apps based on current events or a particular theme or topic such as productivity, or customization.
As one of the most visited places inside the App Store, Apple is opening the doors for more paid advertising from developers or other companies for their apps.
The ads are shown between the posts.
This marks the first time developers can run ads in the section.
Before this, the section only displayed content handpicked from the App Store's editorial staff, without any paid placement.
What's more, ads were only based on keywords typed into the search bar or via the 'Suggested' section.
Additionally, Apple is also adding ads at the bottom of app pages, in a 'You Might Also Like' section.
This effectively allows competitors to advertise on their rival's pages. This placement also allows Apple to increase the cost to developers to buy out this space to shield them against this.
In other words, Apple is 'forcing' developers to buy ads on their own app pages in order to avoid that rivals' apps to be shown there.
The ads are planned to appear starting October 25, in all countries except China.
All ads in the App Store have a blue background and an "Ad" icon.
"Your ad can run across all relevant app categories, or you can refine the categories where it runs.”
Earlier in 2022, it was reported that Apple would be adding more ads to its largely ad-free iPhones in an attempt to triple its ad revenue to $10 billion a year.
In one way or another, this is changing Apple to become more like an advertising company, and a bit like Google and some others.
But unlike them all, Apple creates ad slots in a place it owns, powered by first-party trackers.
Google and social media companies also own the places they show ads. But they need much more data than just their first-party data to build a full profile of the user.
They require third-party data, which is something Apple is not having.
In fact, Apple doesn't need it, because in the walled-garden it operates, it's already the de facto ruler.
Read: Apple's Privacy Changes That Hurt Meta's Advertising Don't Benefit Apple, Said Apple