There have long been rumors that the maker of the iPhone is covertly developing an Apple Search service to rival Google. This theory is once again making headlines today, with an article speculating that it may be one of three fronts in a “silent war” against Google.
Recent events support the idea that the tech giant is preparing to compete directly with Google in a way it hasn’t been before.
For years, Google has paid Apple billions of dollars yearly to be Safari’s default search provider. Or, the search engine that is used when you only enter your search term into the address/search bar combination. As a result, more people visit Google, which makes money by selling adverts in the search results.
Google’s payment is thought to have started at $1 billion in the first year and increased to between $18 and $20 billion last year. This year, a higher payment is expected.
Apple Search has been on the agenda before
For Siri searches, Apple nevertheless makes use of background searches on other search engines like Microsoft’s Bing. Additionally, it has long been reported that Apple themselves built the search engine used by Siri and Spotlight. The company’s occasional acquisition of search companies lends credence to this theory of Apple Search.
Despite the fact that this rumor of Apple Search has been about for a while, the main concern had always been whether Apple would want to enter what is now a pretty opaque industry. The ability to provide tailored advertising that is based on our search and online browsing histories is a key component of Google’s business strategy. Apple deems this to be excessively intrusive and has attempted to stop it through programs like App Tracking Transparency.
But according to one strategy director, Josh Koenig, operating Apple’s own search engine without tailored adverts could cost the company money.
“If Apple could build something that was essentially as good as ‘Google classic’ — Google circa 2010 when it was a simple search engine less optimized for ads revenue — people might just prefer that,”
– Tech strategy director Josh Koenig
Some call it a ”silent war” between Apple and Google
According to The Financial Times, Business Connect might be one of three strategies used to take on Google:
- Apple Maps (including Business Connect)
- Apple Search
- An Apple ad network
Apple Maps is a direct rival to Google Maps, which offers comparable information in conjunction with the recommendations network Yelp and generates income from advertising and referral fees.
Business Connect goes a step further by utilizing Apple’s operating system to offer iOS customers special capabilities like smooth Apple Pay integration or Business Chat, a text-based chat tool for businesses.
As we mentioned before, Apple Search has been talked about for years, and considering that iPhone users make up about 92% of Google’s revenue, if Apple decides to use its own search engine, Google will have taken a big hit financially.
Over the years, Apple’s ad business has gradually expanded, including a significant increase in App Store advertisements. Apple may be planning to create its own ad network to directly compete with Google in a way that respects users’ privacy, according to one high-profile employee.
For a position involving “leading the design of the most privacy-forward, sophisticated demand-side platform (DSP) imaginable,” the company hired former Google and YouTube executive Keith Weisburg.
A DSP is a single platform that enables marketers to purchase ads across many exchanges.
Conclusion
Online advertising is presently dominated by Google, but regulators and Apple are both posing rising threats to its business model of selling targeted adverts by maximizing the use of personal data. Just yesterday, the US Department of Justice announced plans to “unwind Google’s monopolistic grip on the advertising market” after the corporation settled a $23 million case for improperly sharing search data with advertisers.
Nobody is more qualified than Apple to take on Google now as a firm that values privacy, and there has never been a better time.
