Has Apple Modified the Digital Advertising Sector?
Updated: Dec 9, 2022
Marketing expenses, according to several ad agencies and researchers, are rising, which might signify a change in how firms find clients.
To increase client acquisition, eCommerce merchants and direct-to-consumer firms have grown dependent on advertising that addresses consumer behavior.
Facebook and Instagram advertisements were the most popular methods of advertising. Some vendors allocated all of their money to the Meta advertising channel as a result of its increasing power. Why not, too? A marketing team ought to focus even more on a media outlet that offers outstanding returns on investment for advertising. The Meta Ads platform demonstrated this.
A modification to Apple's software, though, may bring about a significant transformation in digital marketing.
Apple Wins the Battle Against Facebook
In May 2021, Apple gave iPhone customers the option to choose whether or not to share the applications they use. This decision limited Meta's ability to track users' activities. In a tweet on August 18, 2022, Nathan Baugh, a freelance writer, used the word "crushed" to describe Apple's decision to increase advertising profits.
“Apple surpassed $3.5B in annual revenue from its ad network,” Baugh wrote, “But it crushed FB, Snap, and 1000s of small businesses in the process. How? By nailing the narrative that big tech threatens consumer privacy.”
The final link in Baugh's tweet is to a Young Money piece titled "Apple's Diabolical Plan to Control the Ads," which describes a notion about how Apple is squeezing its way into the advertising market.
Maybe Apple's executive team is concerned about customers' privacy. Therefore, its actions could have been charitable.
Whatever the reason, Meta and other platforms like Snapchat have seen a drop in income, which might mean they are just somewhat less effective.
Shopify unveiled Collabs, a two-sided influencer marketing tool to link eCommerce firms with social media influencers, on August 16, 2022.
Using Shopify, influencers may make money recommending items for eCommerce companies. A new marketing channel is made available to companies.
Shopify enters the creative margin with Collabs' assistance. Without a doubt, Shopify is searching for strategies to increase its own earnings and shareholder value.
Amazon is the best illustration of a new advertising channel in the e-commerce sector. Amazon allegedly reached $31 billion in ad income in August 2022, surpassing Google and Meta to become the second and third-largest digital ad platforms, respectively.
Retail media advertising is the main promotional offering from Amazon. For eCommerce companies or, really, consumer packaged products generally, there is another option to social media and Google search.
Marketing spending is expected to increase in 2022 and 2023, according to many prominent advertising companies, a February 2022 CMO Survey, and Duke University and Deloitte.\
This doesn't seem out of the ordinary at first. In recent decades, marketing expenditures have usually increased. However, part of that growth may be a result of the necessity to develop substitutes for behavioral targeting as a result of the tracking signal loss caused by Apple's iOS 14 software.
About 2,500 marketers from top U.S. for-profit corporations are surveyed twice a year for the CMO Survey. The largest sustained marketing expenditure in years was predicted by respondents in February 2022, who also predicted a rise in 2022 and 2023.
We may assume it's normal if this were merely a case of digital channel expansion. The poll found that growth is being seen by conventional media as well, including newspapers, radio, television, and direct mail. Several decades have passed since some of these increased.
The interest in conventional media cannot be explained by the claim that there has been a meaningful rise, but rather more of a return to pre-Covid levels. But limited behavioral targeting could be the reason for the rise.