Apple (NASDAQ:AAPL) made a minor but significant adjustment to its organizational structure around three months ago. Eddy Cue, who is in charge of the company’s Services division as a whole, now receives direct reports from Todd Teresi, the company’s vice president of advertising.
That appears to be the first step in a major initiative for the advertising sector. After that, AAPL (NASDAQ:AAPL) made other strategic measures to expand the company, and now Teresi has publicly stated that he hopes to see Apple’s yearly revenue reach $10 billion.
Two Recent Shifts
Apple (NASDAQ:AAPL) has over 1.8 billion devices, so its advertising business is tiny. Current yearly sales of around $4 billion are dwarfed by advertising heavyweights like Meta Platforms, Alphabet, and even Amazon. Even though it’s the smallest, Amazon’s advertising business is nearly ten times greater than Apple’s.
Currently, Apple (NASDAQ:AAPL) promotes its products through the Stocks, News, and App Store applications. However, it may likely grow its ad revenue even further thanks to the achievements of its large technology peers in this area.
As a first step, AAPL (NASDAQ:AAPL) plans to increase the available advertising space available on the App Store. When a user navigates to the App Store’s Search tab, Apple now serves up display advertising alongside promoted listings.
The Today tab recommends apps based on your usage patterns and will soon feature display advertisements. Additionally, it will begin displaying display advertisements on third-party app sites, allowing apps to promote their goods on a competitor’s product page.
Secondly, Digiday has uncovered a significant shift in the app industry as a new job posting. The organization’s goal is to construct a DSP (demand-side platform). Advertisers might save time and money by using a DSP to automate their purchases of Apple’s inventory. It may also entice those with more limited advertising budgets, which could increase overall ad rates. In addition to increasing profits, having control of one’s advertising technology is a significant factor in the success of the advertising industry.
What does Apple do next?
There are numerous openings for Apple (NASDAQ:AAPL) to increase its advertising presence within the apps and services that iPhone customers rely on most.
It supposedly already investigated the possibility of placing ads in Maps. Promotional search results and highlighting of landmarks along a path or in a particular area are two examples.
Mark Gurman of Bloomberg suggests considering podcasts and books as additional advertising venues. Both allow users to browse for and find new content, which might make simple display and keyword ads effective.
A podcast advertising network and video commercials on Apple TV+ are just two examples of how expanding the ad business could impact the company’s offerings. On its TV+, the multinational technology company is already selling a modest number of adverts during Friday night baseball broadcasts. In the future, Apple may include more video content sponsored by advertisements within the service.
Creating a web search engine similar to Google is another promising long-term prospect. Even while Apple has a profitable relationship with Google now, that might all change if the search engine comes under governmental pressure in the future and has to discontinue arrangements like the one Apple (NASDAQ:AAPL) currently has.
Teresi’s target of $10 billion in advertising income seems reasonable. Apple’s bottom line could benefit significantly from digital advertising in the following years due to the industry’s high-profit margins.
Featured Image: Megapixl © Preisler
Author Shariq Khan 
