Apple to Show More Ads on iPhone and Plans to Triple Ad Revenue

There are more hints that Apple is actively diversifying its advertising business. Gurman claims in today's edition of Mark Gurman's Power On newsletter that Apple VP Advertising Platforms Todd Teresi wants to increase yearly revenue to around $10 billion per year, up from about $4 billion currently. That implies a threefold increase in the company's current ad market is possible. According to Gurman, Apple has already conducted tests for sponsored results in the Maps app, similar to the App Store Search Ads initiative. In the future, advertisements could appear in the Apple Books and Apple Podcasts storefronts.

Apple ads revenue currently comes from a handful of sources; App Store Search Ads, ads in Apple News and Apple Stocks (the news sections), and a share of commercials during MLB Friday Night Baseball streams. In addition to bringing ads to other stock apps, Apple has already announced that customers will start seeing more ads in the App Store. New ad units in iOS 16 will allow advertisers to place ads on the Today tab in the App Store, and at the bottom of product pages for other apps.

Apple's revenue from Apple hardware sales has been slowing for the past five or so years, yet it has continued to expand into its service divisions' money-making possibilities, such as advertising. Apple debuted its ad business with the launch of iAd in 2010, which allowed developers to place Apple banner ads — rather than Google AdMob and other platforms' offers — in their apps. iAd was a dismal failure that was eventually discontinued.

Apple has been accused of growing its own advertising business while restricting the third-party ad market through privacy features like App Tracking Transparency. If Apple oversteps with intrusive advertising in its premium devices' user experience, it may jeopardize its premium brand reputation.