Apple killed the ad business of its competitors with one big change: the App Tracking Transparency feature on the iPhone. Earlier, apps like Facebook, Twitter, Snap, and more could freely perform cross-app tracking on iPhone users. The new update allowed the users to choose whether they wanted apps to track them or not. Unsurprisingly, users chose the latter, damaging the revenue of other apps by a significant margin.
But Apple has become a major ad player in the industry once dominated by Google and Facebook. Apple ads are a reality now, and from recent reports, it is clear that the ads business is booming. It is booming so much that developers are ready to pay top dollar for promoting their apps on the App Store.
Apple Ads: How much have they grown?
Before App Tracking Transparency measures, the numbers were quite okay, but now, the App Store is an equally lucrative spot for advertisers. Apple cunningly reduced the business of its competitors while pushing its platform on the pedestal. Reports by Appsumer indicate that the adoption rate of Apple ads on the App Store grew by four percent compared to the last year. Meanwhile, Google and Facebook witnessed a drop in the adoption rate, with 2% and 4%, respectively.
You may be keen on why developers want to advertise their products using Apple ads. Well, firstly, it is the only market to sell apps for Apple devices. Secondly, with so many new developers joining every year, it becomes hard to surface in a certain category. So, the Apple ads platform gives the much-needed push to the apps displayed when you search for an app on the App Store. Since they appear at the top, users may be tempted to try them first.
Of course, it gives an undue advantage to the advertisers, but it is the reality of any platform which becomes big enough. Amazon, for instance, evolved from an e-commerce platform to offering ad spots to sellers to promote their products. Apple ads are similar, but unlike products, advertisers promote their apps.