Apple is set to put ads in Apple maps in services push
The company has been working to sell more ads inside of its News app as well
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[LOS ANGELES] Apple is preparing to introduce advertising in its Maps app, part of a broader push to generate more money from services.
An announcement could come as early as this month, according to sources with knowledge of the matter. The system will operate similarly to advertising in Google Maps, allowing retailers and brands to bid for ad slots against search queries, said the sources, who asked not to be identified because the plans are private.
The programme would let a restaurant bid for a search term – say, sushi. Then when a user seeks that type of food, an ad for the location of the highest bidder would appear at the top of the results. Like Google, Yelp uses a similar approach in its app and website.
A spokesperson for Apple declined to comment.
The increased ad revenue will bolster a services business that already generates more than US$100 billion a year for Apple. The operation now accounts for more than a quarter of the company’s sales, up from less than 10 per cent a decade ago.
But Apple faces challenges in services, with regulators pushing for changes to its App Store model. The company’s multibillion-dollar search deal with Alphabet’s Google is also under threat from a switch to artificial intelligence-based searches. The ad growth could help offset a slowdown in other areas.
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Apple’s advertising division remains relatively small but should generate about US$8.5 billion this year, according to Emarketer. Bloomberg News previously reported that ads were coming to Apple Maps this year.
Apple’s advertising division is led by veteran executive Todd Teresi, who reports to Eddy Cue, the senior vice-president of services and health. The company changed the name of its advertising push last year to Apple Ads from Search Ads, underscoring its growing ambitions.
Under Apple’s plan, the ads will begin appearing inside Maps as early as this summer on the iPhone and other devices, in addition to the web.
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The move follows the creation of new advertising slots within the App Store. The company also uses its Major League Soccer subscription package to generate advertising on its Apple TV platform.
Apple has been working to sell more ads inside of its News app as well. And the Cupertino, California-based company has recently made changes to its podcast service that will make it easier to embed advertising. BLOOMBERG
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