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Afaik increased competition reduces margins. And this only applies to the US (Apple is a minority everywhere else). Even if they think they got the 'premium' consumers locked, their reach is small for ad campaigns
That Apple could do it doesn’t mean they will, and the article doesn’t present much actual evidence it will. In Apple long-running saga with Ads it’s always seemed like Apple hates ads because it’s other companies content (and so priorities, aesthetic, and feel) jammed inside an Apple product. And Apple hates anything that ruins the Apple Experience :tm: Paying to be the first App Store entry is great, because it’s A…
The most lucrative ad-supported site in the world (Google search) also shows normal-looking paid content at the top of a list of search results. Apple doesn't need to accept ugly banner ads to build an enormous ad business.
> Apple's advertising business will layer on top of all Apple's existing products and have extremely high margins Afaik increased competition reduces margins. And this only applies to the US (Apple is a minority everywhere else). Even if they think they got the 'premium' consumers locked, their reach is small for ad campaigns
> Apple first spent years telling us how much it respects consumer privacy... In the name of consumer privacy, it was able to box out competitors from using its first party device data, giving itself exclusive access to better target ads
I’ve made some apps that have had millions of downloads that I launched with no ad spend whatsoever, just good old fashioned viral growth. It got a tonne of copycats but that was OK because I just made the app better in response.
Now, your app is competing against all the inevitable copycats - but those copycats can now just outspend you on ads. They no longer have to make a better product, just have a bigger budget. People are lazy and download the first result a lot of the time.
AppStore search is famously awful enough as it is, ads make it even worse.
I'm out if this happens.
to where though?
No ads.
Apple adding ads to the AppStore was a terrible idea. Not because I hate seeing ads, but as a developer I hate it. I’ve made some apps that have had millions of downloads that I launched with no ad spend whatsoever, just good old fashioned viral growth. It got a tonne of copycats but that was OK because I just made the app better in response. Now, your app is competing against all the inevitable copycats - but those…
> People are lazy and download the first result a lot of the time.
If people need something right away, they're unlikely to want to spend time evaluating a bunch of alternatives.
> Apple's advertising business will layer on top of all Apple's existing products and have extremely high margins Afaik increased competition reduces margins. And this only applies to the US (Apple is a minority everywhere else). Even if they think they got the 'premium' consumers locked, their reach is small for ad campaigns
One point the article makes is that Apple's strategy around privacy allows it to eliminate competition for its ad business. > Apple first spent years telling us how much it respects consumer privacy... In the name of consumer privacy, it was able to box out competitors from using its first party device data, giving itself exclusive access to better target ads
it would also be schizophrenic if apple didn't have to abide by the rules it proudly imposes on others