Apple will be covered with third-party ads for apps in the iPhone

Hello.

If you wait a little, then all the secret will become clear. Last summer, along with the release of iOS 14.5 at Apple

updated their app policy, addednew privacy setting - App Tracking Transparency (ATT). Each application should ask if the user allows to track their activity - what sites they visit, what they do on the device, and so on.

Deceptive privacy iOS 14.5 - surveillance by other methods

Apple's campaign for user privacy does not abolish surveillance at all, but only offers other tools for this.

The blow was clearly directed against the largestadvertiser, Facebook*. Ad revenue on iOS for it began to fall consistently, the cost of advertising at the same time rose, and Apple benefited from this. A year ago, I was sure that there was no protection for user privacy on the part of Apple, the company was clearing space by its usual means in order to sell advertising on its own and simply destroy a strong competitor. And now we have the opportunity to confirm my confidence with the facts that have become known.

Let's start with a WSJ publication shedding light ondesires of Apple and what was offered by Facebook*. In particular, the company believed that the promotion of messages in the social network feed was advertising placements, and Apple wanted to receive a share of the income. Apple's motivation is in-app purchases, which means they are subject to the terms of the App Store. As an option, Apple proposed to promote the social network application by subscription, that is, to make it paid. According to Apple management, the presence of this application does not affect the popularity of the company's products and their sales.

Now for the interesting numbers - keep track of youractions on iOS enabled 37% of users in the US. Due to less accurate ads, 59% of advertisers in the US switched to Android from iOS and began placing ads on a different platform. But at the same time, the cost of advertising on iOS has increased in price. Companies like Facebook*, Twitter, Snap, YouTube lost up to $17.8 billion in ad revenue on iOS in 2022. The article can be found here.

To say that Apple did not sell ads in iOS,it is impossible, this or that services that the company promoted under agreements and received billions of dollars for this can be considered as such. For example, in order for the default search in iOS to be that of Google, the latter paid and pays literally billions. We owe the appearance of Apple Maps to the fact that Google did not want to pay the amounts that Apple insisted on. And the corporation simply launched its own project, which gradually began to be made digestible for the American market, as well as for individual countries. But even today, Apple Maps lags behind Google Maps, if we take not the American market, but the whole world. Although for the average user, this gap is not so visible.

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Apple is always trying to make a profit, the companyfocused on getting money at any cost, regardless of how it may look in the eyes of its consumers. Let me remind you that today Apple is a manufacturer of luxury devices that are much more expensive than similar models on Android. In comparison with Samsung, the cost is higher by 30-35%, with Chinese manufacturers - by 50-60%.

And so Apple decided to follow in the footsteps of Xiaomi and add advertising to their branded applications.

Initially, ads will be in applications"News", "Weather", App Store - it will always be marked with an icon so that you understand that you have a paid placement. Pretty neat, but given the small screens in the same iPhone, ads eat up a lot of useful space. And this is the difference from what we see on Xiaomi.

Some time ago, Samsung ran adsin branded applications, which caused endless annoyance of people: you bought an expensive smartphone, and you were also loaded with unnecessary ads. And here the question arises of how the audience of Apple users will react, something tells me that they will find an excuse for such a step by their beloved company.

On the call for second-quarter results at Applestated that the company's advertising revenues amount to $ 4 billion (they include the cost of promoting the same Google as a search engine). Apple's goal is to at least double these revenues, and the only way to do this is to place ads from third-party companies. And here the image that Apple has created for itself in recent years begins to crumble: no ads inside the system, more privacy for users. Ads appear, and privacy also disappears, since at Apple everyone knows about their consumers and will be happy to use this data. Of course, according to the old tradition, the company will declare that no one but it sees user data, this provides additional security and further down the list. The fact is that Apple first removed strong competitors from its platform, waited a bit and began to occupy the vacant seat. Nothing personal just business.

In Russia, Apple is de facto not present,hence the simple conclusion - we will not show ads, or it will be ads that are not very relevant for us. To ensure coverage, such advertising may be included, but, most likely, at first it will not be.

My attitude to advertising in branded applicationsApple is purely negative, exactly the same as advertising in Samsung smartphones when it existed. We buy devices at full price, no one gives us a discount on them. Create, like in Amazon, two versions of devices - with and without ads, make different prices and the ability to opt out of ads by paying a small amount.

For Apple, this move looks devastating, sohow it destroys the image of the company, makes it completely different. The thirst for profit comes to the fore at any cost, including at the expense of the comfort of its users. Something tells me that Steve Jobs from this decision would not only be not happy, but rather furious. Appealing to those who are not with us is bad form, but still it is impossible to imagine that Jobs could approve of this. Raise the prices of all products? Definitely could. But making a pretty penny with annoying ads? Absolutely not. Even in the best-case scenario, average ad revenue per iPhone could be around $10 or less. Not the same figure for smartphones that cost $800 and up (and even more in other countries). I see this decision of Tim Cook's team as a very big mistake, which will lead to the fact that the gilding from the Apple brand will begin to fly around faster than before.

We conducted a survey on how you feel about ads on iOS. Those who rejoice at this innovation are in a staggering minority.

The survey can be found here

Tim Cook and his team have a priority onlymoney and how to squeeze it out of customers at any cost. It is good that every year this becomes so obvious that it does not require any additional explanation. And this is just the beginning of a big crisis, the luxury goods manufacturer will soon begin to introduce a fee for each sneeze, create a million adapters, just for you to pay. Brilliance and poverty of spirit in one bottle - this is Apple today.

*Meta Platforms, which includes the social networks Facebook and Instagram, has been recognized as an extremist organization and banned in the Russian Federation.