Apple moves in on advertising

Following proposed privacy changes that have had rivals quaking, Apple is reportedly looking to expand its advertising interests in its hugely important App Store.

Why it matters

The changes are relatively minor but significant due to Apple’s scale. While Apple’s iOS powers far fewer devices around the world than Android, it leads the way in app-store revenues as a result of its popularity in high-income countries.

What’s going on

• The FT reports that the iPhone maker is looking to expand its search advertising in the App Store, where punters can already buy the top spot in search listings, to sell a second tier of  ads for ‘suggested’ apps.
• It comes at a time of major changes to the privacy settings it gives to users with the forthcoming software update (iOS 14.5) which will require companies tracking iPhone users to gain their explicit consent. In other words, it makes the ability to decline extremely easy for users.
• Facebook expects to be hit hard by this change that analysts anticipate will prompt most users to decline tracking. As a result, it is telling ad partners to expect performance fluctuations.

Sourced from the Financial Times, Facebook