Apple's next big thing is advertising

By Chris Pash | 18 November 2019
Apple TV+ original show The Morning Show

Apple could be generating billions of dollars by allowing more advertising across its platforms including the recently launched Apple TV+, the Safari browser and the App Store.

Growth of ad sales would be fast, generating $US11 billion a year from advertising by 2025 up from $US2 billion today, says Samik Chatterjee, an analyst at JPMorgan,.

“We believe hidden in plain sight and underappreciated by most is the advertising opportunity within Apple’s fingertips,” he wrote in a note to clients.

He points to the user base of iPhones, now almost one billion, and the company’s advertising so far via Apple Search Ads in the App Store.

Apple currently allows only one advertisement per search.

"Apple can amplify its revenue from Apple Search Ads by adopting additional advertisements per search," says Chatterjee.

Advertising could also be added to the Apple TV+ streaming media platform.

"There is an opportunity for Apple to monetise advertising opportunities on Apple TV through suggestions and targeting of demographics for content distribution,” says Chatterjee.

Apple TV+ launched in Australia this month. 

Apple shares have grown about 65% this year.

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