Could Ads Be Coming to Apple Maps?
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In its search for ways to generate more service revenue, Apple may soon take a page out of Google’s books by bringing search ads to Google Maps.
It’s not the first time we’ve heard this notion, but according to Bloomberg’s Mark Gurman the idea of generating advertising revenue through its mapping platform is back on the table within Apple’s executive ranks.
Like many tech companies, Apple has been making advertising a higher priority over the past few years. It already shows ads in the Apple News and Stocks apps, and the App Store has been running Google-like search ads for years. So, it’s not entirely out of the question that Apple Maps could be the next frontier.
Apple’s push into advertising has been relatively subtle in most cases. News and Stocks have arguably the most blatant ad placements, although they’re not much different from what you’d see in your web browser on any ad-supported website. The ads in News articles are also typically part of a revenue-sharing arrangement with the publishers themselves, and it’s often unclear which ads are Apple-generated and which are provided directly by the publishers.
Ads on the App Store are considerably more relevant, as Apple isn’t slapping up random ads there. Instead, developers can pay for top placement in specific searches, where they’ll appear as a tagged “Ad” above the organic search results. Paid app ads also show on the Today page and the related “You Might Also Like” section at the bottom of individual app pages, but in every case, they’re clearly tagged as ads, and they’re always for other apps.
When Gurman reported on Apple’s expanded advertising ambitions in 2022, he noted that Apple was exploring the idea of adding search ads to Apple Maps. However, not much came of that, suggesting that Apple had shelved the idea, at least temporarily. However, Apple is now “giving this notion more thought,” Gurman said in this week’s Power On newsletter.
Both then and now, Gurman’s sources suggest that Apple Maps ads will take a form similar to the App Store’s search ads — and those in Google Maps. These wouldn’t be random banner ads for products on Amazon but rather the ability for businesses to pay for top placement when users search for specific terms.
In a recent all-hands meeting for the Maps group, Apple said monetizing the app is a lever it is exploring. While there is no timeline or active engineering work being done, the company has again floated the idea of charging for prioritization in search results. It also could make certain locations appear more prominently on the map. This is already a fairly large business for Google, and Apple could conceivably replicate that success to fuel its services business.
Mark Gurman
There’s reportedly still no plan for when Apple might turn the key on this, but the fact that it’s still under discussion suggests the company is serious about considering it as a new source of revenue.
While Apple has thus far eschewed ad-supported tiers for its streaming services, it also doesn’t seem to be ruling that out entirely in a world where nearly every other video streaming service has adopted that business model. Companies like Netflix and Disney+ have found their ad-supported businesses so lucrative that they’ve eliminated their lower-paid tiers and raised the prices of others to try and force folks to either downgrade to an ad-laden plan or pay their fair share to make up for the lost ad revenue.
Apple has taken baby steps into advertising on Apple TV+ with its sports-related services like Friday Night Baseball and MLS Season Pass. However, there are also indications that it’s exploring ways to do more advertising with Apple TV+.
Four years ago, Apple said it wouldn’t ever go with an ad-supported Apple Music tier, with the company’s Global Senior Director of Music Publishing, Elena Segal, stating that it can’t “support a healthy overall ecosystem” and would “really go against our fundamental values on privacy.” Still, times change and it’s impossible to rule out Apple Music also going down that road someday.
[The information provided in this article has NOT been confirmed by Apple and may be speculation. Provided details may not be factual. Take all rumors, tech or otherwise, with a grain of salt.]
