Although it is well known that advertising brings a lot of money, in some cases the most money, Apple is shutting down iAd app on June 30.
- Apple used to get 30% of the ad revenues
- The iAd app might be given to advertisers who will get 100% of the revenues
- Apple is not as good in the advertising industry as Google or Facebook
iAd was launched in 2010 and showed ad campaigns from AT&T, Walt Disney Studios, Nissan, Target and many others. Apple was gaining 30 percent of the revenue generated by the ads. The rumors have it that Apple is completely getting rid of the app.
However, it might not be the case. Apple is not going to allow new ads into the app, but current campaigns are allowed to run until June 30. Some say that beginning with that date, the app might be simply given to publishers.
Therefore, Apple will no longer own it and companies will advertise there for free, without having to pay the tech giant 30 percent of their advertising revenues. Why would Apple give up on these revenues?
It seems that for once, Apple is not the number one company when it comes to advertising. Google and Facebook earn a lot more money from advertising, while Apple’s market share is next to none.
Although the iAd app did contribute a little to the company’s profit, it was little enough so that they decided they no longer need it. According to data, in 2015 Apple’s ad revenues accounted for only 5.4 percent of the total U.S. revenues in mobile ads. Plus, the company got less than $800 million for ads compared to their total revenues of over $230 billion.
Even though it might not seem as the best decision for Apple’s business, it might be a great opportunity for advertisers, who will be able to share their ad campaigns with the public for free. Since advertisers usually have to pay for ads’ space, free ad space is like a Christmas present to them. The only downside to this is that obviously, the ad application is optimized only for iOS devices, so users of other devices will not see the ads, which means the target public will be somewhat reduced.
Image source: www.bing.com