Apple Maps May Introduce Ads: A New Revenue Stream for iPhone Maker
Generated by AI AgentWesley Park
Sunday, Feb 16, 2025 10:50 pm ET1min read
AAPL--
Apple Maps, the Cupertino giant's navigation app, could soon be joining the ad game, mirroring Google Maps' monetization strategy. According to top analyst Mark Gurman, Apple is exploring ways to introduce advertisements into its Maps app, potentially opening up a new revenue stream for the iPhone maker.
As per Gurman's Power On newsletter, Apple is considering various ways to monetize its navigation app, including search ads and promoted locations. Businesses could pay Apple to appear higher in search results or to showcase their retail locations more prominently on the map. This move aligns with Apple's broader advertising strategy, which already includes search ads in the App Store, Apple News, and Stocks.
The introduction of ads in Apple Maps could significantly contribute to Apple's overall Services revenue growth strategy. In August 2024, Apple had a 51% share in voice in programmatic advertising, up 6% year-on-year, and made around $10 billion in Services revenue from ads alone in 2024. By adding another ad platform in Apple Maps, Apple could further boost its ad revenue and attract more users to its ecosystem.
However, Apple must tread carefully when implementing ads in its Maps app. Google Maps' ad experience has been criticized for being intrusive and distracting at times. Apple should aim to create a more seamless and less obtrusive ad experience for its users, perhaps offering an ad-free version of Apple Maps through its Apple One subscription service.
In conclusion, the introduction of ads in Apple Maps could be a win-win for both Apple and its users. By offering a new revenue stream and attracting more users to its ecosystem, Apple could further boost its Services revenue and solidify its position in the navigation app market. However, Apple must ensure that the ad experience is not intrusive or distracting, and that it aligns with the company's commitment to privacy and user experience.
GOOGL--
Apple Maps, the Cupertino giant's navigation app, could soon be joining the ad game, mirroring Google Maps' monetization strategy. According to top analyst Mark Gurman, Apple is exploring ways to introduce advertisements into its Maps app, potentially opening up a new revenue stream for the iPhone maker.
As per Gurman's Power On newsletter, Apple is considering various ways to monetize its navigation app, including search ads and promoted locations. Businesses could pay Apple to appear higher in search results or to showcase their retail locations more prominently on the map. This move aligns with Apple's broader advertising strategy, which already includes search ads in the App Store, Apple News, and Stocks.
The introduction of ads in Apple Maps could significantly contribute to Apple's overall Services revenue growth strategy. In August 2024, Apple had a 51% share in voice in programmatic advertising, up 6% year-on-year, and made around $10 billion in Services revenue from ads alone in 2024. By adding another ad platform in Apple Maps, Apple could further boost its ad revenue and attract more users to its ecosystem.
However, Apple must tread carefully when implementing ads in its Maps app. Google Maps' ad experience has been criticized for being intrusive and distracting at times. Apple should aim to create a more seamless and less obtrusive ad experience for its users, perhaps offering an ad-free version of Apple Maps through its Apple One subscription service.
In conclusion, the introduction of ads in Apple Maps could be a win-win for both Apple and its users. By offering a new revenue stream and attracting more users to its ecosystem, Apple could further boost its Services revenue and solidify its position in the navigation app market. However, Apple must ensure that the ad experience is not intrusive or distracting, and that it aligns with the company's commitment to privacy and user experience.
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