As you know Apple implemented some privacy features for App Store users, but how did Apple profit from those privacy tools?
The new App Store policy, which was first implemented in 2021, limited apps’ capacity to monitor user behavior without obtaining permission first, making targeted advertising more difficult.
Apple has managed to profit from its App Store privacy measures
However, according to a new Financial Times article, there was an unexpected benefit for Apple as well. Apple’s own App Store advertising business boomed after it implemented the new policy, according to interviews of Financial Times with numerous analytics firms and advertisers.
Sponsored results for other games, or related applications, may appear at the top of search engine results if you look for a specific iPhone game in the App Store. According to Financial Times, this method is used as a targeted advertising tool.
In the last six months, Apple has increased its share of sponsored app store downloads from 17% to 58%, according to one analytics company. The company’s advertising income is anticipated to rise by twofold and advertisers said they were putting more money into Apple ads than Google.
Advertisers said that while Facebook’s ad platform was limited to general interest categories, Apple offers were more precise and real-time. With retargeting features, they could get additional granular data from Apple ads – something marketers like Facebook are no longer able to provide.
The important thing to remember here is that Apple’s effort to protect user privacy is also beneficial to the company. But why? Because less outdoor advertising in your App Store feeds means more space for advertisements hosted by Apple.