Ads in Maps? Apple's new revenue plan revealed
What's the story
Apple is planning to introduce advertisements on its Apple Maps platform, a recent Bloomberg report said. The move comes as part of the tech giant's strategy to boost its services revenue. The decision was taken during a company-wide meeting where the board agreed to "explore" the idea of integrating ads into Apple Maps. Talks about the initiative have been ongoing since 2022, with an initial 2023 launch planned that was later postponed for undisclosed reasons.
Ad strategy
Ad implementation on Apple Maps: A closer look
The proposed ad implementation on Apple Maps would be similar to that of Google Maps. Business owners would get an option to pay Apple to highlight their locations in search results. These promoted locations would probably be marked with a "Sponsored" disclosure banner, just like the ones you see in the App Store. This strategy would give businesses more visibility and Apple more revenue.
Revenue diversification
Apple's shift toward service revenue amid stagnant hardware sales
As hardware sales plateau, Apple is turning its attention toward its services to drive subscription revenue. According to Apple Insider, the company has already made over $10 billion from its services alone. This includes expanding apps like Apple TV, Apple Music, and Apple Music Classical to Android smartphones. In the future, more first-party apps are expected to be made available on other platforms as part of this revenue diversification strategy.