Apple reportedly intensifies focus on advertising

Apple has discreetly been taking steps that indicate its intent to establish a robust advertising system.

Apple, commonly known for its iPhone products, is planning to introduce ads on Maps this summer.

Additionally, it has introduced Apple Business, which merges an array of business-oriented tools, including ads, into one platform.

A significant portion of Apple's advertising revenue is derived from app developers purchasing ads on the App Store.

These latest initiatives suggest that Apple aims to capture a larger portion of the advertising market targeting small to medium-sized businesses.

Ads on maps represent a minor yet highly competitive element in media strategies for advertisers whose offerings are connected to physical locations.

This is particularly true in industries such as fast-food retail, where brands compete fiercely for prominent placements.

Experts from Omdia estimate that Google's earnings from map advertisements are about double the revenue from app installation ads on the Play Store.

"Introducing ads to Apple Maps can yield substantial potential gains," Omdia analyst Matthew Bailey shared with me. He observed that advertisements on Google Maps are closely woven with Google's extensive base of search advertisers, a network that Apple does not possess.

Apple's strategy within the advertising sector has been conservative and understated compared to its major technology competitors.

It's unlikely we will see "Apple's presence" at Cannes Lions in the near future. Apple's advertising leadership tends to remain understated.

"Apple might be the biggest advertising company that doesn't label itself as an advertising firm," Itai Cohen, chief strategy officer at the mobile ad company Digital Turbine, noted.

Analysts from Omdia estimate Apple's advertising revenue rose by 15% last year, reaching close to $7 billion, with 95% attributed to app installation ads in the App Store.

Even with continued growth, Apple's App Store is beginning to give off a "scraping for growth" vibe, using a phrase coined by former Google ads chief Jerry Dischler, as it strives to sustain rapid expansion of its advertising business. Advertising opportunities are increasing: Formerly a single sponsored search result has now expanded to multiple ad spots.

As iPhone update cycles extend, Apple's $109 billion services division, which includes advertising endeavors, has become vital to the company's growth.