Apple: Setting Up to Core Alphabet and Meta Ad Revenue

September 13, 2022

I read somewhere that in the land of the free and home of the brave, half of the mobile phone users tote around Apple iPhones. Why? I will leave answering that question to TikTok and YouTube gizmo experts. (I use a cheap and outdated Essential some times; other times I used an outdated One Plus device. Why? I am a cheap dinobaby.)

I thought about this iPhone market share when I picked up the weird orange newspaper and read “Apple Plans to Double Its Digital Advertising Business Workforce.” The main idea is:

The digital ads industry has been on edge about Apple’s advertising ambitions since it launched privacy rules last year that disrupted the $400bn digital ads market, making it difficult to tailor ads to Apple’s 1bn-plus iPhone users. Since the policy was introduced, Facebook parent Meta, Snap and Twitter have lost billions of dollars in revenue — and far more in market valuation, although there have been additional contributing factors.

The digital advertising market is big, and I am skeptical about the numbers bandied about by the 20 somethings. From my vantage point in a damp hollow in rural Kentucky, I have formulated some hypotheses:

  1. Apple will explain its move to suck in advertising revenue in gentle terms, including references to dignity, privacy, security, and meeting user needs. I think the truth is that the new revenue will meet Apple’s needs, but you will probably touch your iPhone and say, “Heresy. This dinobaby is from another era. Yep, I am.)
  2. Amazon, Facebook, and Google will have to adjust. My hunch is that Amazon has some wiggle room with the online store and digital content. If you want to be found when I search for mesh sneakers, you better buy Amazon preferred and sponsored slots. The Facebook has lots of users, but it is a bit like Milton’s Beelzebub. The Google has the search thing and lots of content and eyeballs, so it can offer bundles at a very attractive price no matter what the Tim Apple outfit does. Other outfits? Yeah, good luck.
  3. Regulators in the US will lag behind their EU counterparts. This means that a new Wild West is about to open up. Forget the metaverse. Think renting land in the Apple-verse.

Interesting play in a mostly unregulated service space.

Stephen E Arnold, September 13, 2022


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