The proud Apple suddenly lowered his head to the advertisement. What is the situation?
Recently, media reported that Apple will increase its advertising revenue target. In addition to app stores and AppNews, its podcasts, maps, and book reading applications will launch advertising services.
has always claimed to be pure, and is it okay to "bow your back" for advertising.
is advertising revenue?
advertising has always been an important source of income for mobile phone manufacturers, especially for the Android camp, this part of the revenue is considerable.
Xiaomi , which has been criticized the most, is also praised for its title of "advertising company" because of too much implantation. Last year, I vowed to build the "three zero system" Meizu , but finally I had no choice but to regret it and bowed my head to the "financial owner".
Because of this, putting user experience first, the relatively pure IOS system seems valuable and has also created Apple's noble image.
But don’t treat it as a “good person”. The route that Jobs planned for Apple is not a proud gentleman who “does not bow down for five buckets of rice.”
As early as 2016, native ads were embedded in iOS4, and in 2016 it expanded its advertising scope with Apple Search Ads. Mr. Qiao made a bold statement and wanted to gain 48% of the market share of the Internet advertising market.
You should know that at that time, the , Google , had the largest advertising revenue, only occupied 29% of the market share, and Apple's tone was too big. So naturally, its dream turned into a delusion.
In 2017, it actively chose to give up its mobile advertising business and announced that it would no longer accept the new mobile application software to launch native advertising services, but it will still provide services to its original customers. This decision directly led to a sharp drop in its advertising revenue of 30% that year, and also laid the groundwork for its future "cold" image.
What makes it change the strategy? speculation may be related to IOS compatibility and Google's hardware advantages gradually.
In short, Apple is not a cake that doesn’t want to divide advertising, but the situation has forced it to adjust its strategy.
profit declined, Apple was helpless
time has changed, and now the situation it faces has changed again. Smartphone shipments have dropped rapidly, and it has always been strong in its performance and felt a chill.
According to the latest financial report data, its net profit declined below 10% in the second quarter. Its most competitive hardware product revenue has also declined to varying degrees, especially in wearable devices, homes and accessories, with a maximum drop of 7.9%.
Among the bleak results, only iPhone sales still withstand the pressure and achieved growth, but only year-on-year growth of 2.8%. The reason for the decline of
is not new, it is nothing more than the reduction in offline customer sources and supply chain tightness, etc.
Such rhetoric can coax investors in Wall Street in the short term, but he must also realize that new solutions need to be proposed to completely solve the problem.
However, according to IDCh data, the growth rate of global mobile phone shipments in 2022 stagnated, down 9% year-on-year in the second quarter, and only a few manufacturers achieved counter-trend growth.
In this context, Apple embracing advertising cannot be considered a future, and it can only be regarded as a helpless choice.
In fact, including it, Xiaomi and Huawei both hope to make up for some of their revenue.
Not long ago, the third generation of Hongmeng system was launched. At the press conference, Huawei focused its publicity on the taxi service Petal, reflecting its ambition to enter the online car-hailing business. At the same time, system software such as service centers and command assistants have launched more advertisements.
As for Xiaomi, it is even more a veteran advertising player. Its advertising gross profit reached a maximum of 76.1%, while its mobile phone gross profit was only 11.9%. Even in 2021, when its main business is under pressure, its advertising revenue is still as high as 10.1 billion yuan.
is visible. This is a business that has a stable profit and huge profit margin. For Apple, which has an absolute advantage in the high-end mobile phone market, it is naturally a better business.
How to maintain a "high-end" image?
However, a good business does not mean that it can do well, and the challenges it has to face are not small.
For a mature brand like Apple, its image has been deeply rooted in the hearts of the people, not to mention that it has always followed the high-end route of user experience first.
Lei Jun once set "hardware profit not exceeding 5%" as the iron rule of Xiaomi mobile phone , so Xiaomi mobile phones are also labeled as cost-effective. Because of this, people have a high tolerance for Xiaomi advertising.
Apple's hardware gross profit margin has always been the best. If you still want to "harvest" users, it is easy to be said to be ugly.
In addition to coordinating users, it is up to be discussed whether it can win the favor of advertisers.
As we all know, in order to protect user privacy, the IOS system has set up tracking prompts that users can independently choose application developers. Obviously, for an Internet platform that deliberately obtains data, it is tantamount to a wake-up call and being persuaded to withdraw every minute.
Furthermore, even if the advertiser obtains data permissions, will Apple's services definitely be better? not necessarily.
After all, the humanized service of the old rival Google is well-known. What Jobs did not do, whether Cook can do it depends on his ability.
In short, The world is full of prosperity for profit, and there is no business forever, it is forever.
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