Apple Adds 'Apple Ads'
Benjamin Mayo
On the surface, this seems like a small, largely aesthetic tweak:
Apple today announced that it has officially rebranded Search Ads as ‘Apple Ads’, reflecting the expanding scope of Apple’s advertising business.
When Apple first launched ads in the App Store, they were only shown as promoted search results, hence the name ‘Search Ads’. But the company now offers advertising placements in many more places beyond just the Search tab, so the old name had become a bit anachronistic.
After all, as Apple themselves note in the message about the change to developers:
When Apple Search Ads launched in 2016, we offered a single ad placement at the top of search results. Today, advertisers can run ads in multiple placements across the App Store, so we’ve decided to change our name.
But this is one of those subtle tweaks that I wouldn't be shocked if it portends far greater things. Meaning: a massive expansion of Apple into the advertising business.
They'll deny this right now, of course. And everyone will be quick to recall the failure that was 'iAd'. But times have changed. Apple is obviously making moves to open up their myriad surfaces to more ads. As the iPhone business has finally run into the wall that is the law of large numbers (not to mention the other, largely political challenges currently facing the business), the company has done well to diversify their revenue streams thanks to the rise of Services. Without that Next Big Thing™ on the horizon in terms of a new product line for Apple, it feels inevitable that a larger push into advertising is in the cards. It's just a matter of time.
Again, I know Apple will say this isn't a major part of their plans and they have a long history of rhetoric that seems antithetical to the way that particular business tends to operate – with regard to user data and privacy. But Apple also has a long, illustrious history of saying they won't do something... until they do.1
Beyond the App Store and what they've been doing with Apple News, there are long-standing rumors of ads coming to Apple Maps. And it feels like they'll just be leaving money (and potentially eyeballs) on the table if they don't eventually offer some sort of ad-supported tier of Apple TV – in particular given their growing sports content catalog.
And what if Apple eventually does get more into search (beyond the App Store variety) – whether it's forced upon them or they buy up, say, an AI company...
If and when Apple is ready to roll out a more fully-featured advertising offering, selling packages to buyers, they're probably going to want to be peddling a better and less confusing name than 'Search Ads'. 'Apple Ads' works.
M.G. Siegler
M.G. Siegler
M.G. Siegler
1 And the advertising space, in particular, has a history of companies saying they won't do it -- until they do. Netflix. Snap. Soon, undoubtedly, OpenAI...