Updated:With Apple's announcementNew Apple Business PlatformThis includes built-in MDM, custom domain emails, and enhanced map branding capabilities. Apple has also confirmed that it will add more brand promotion services to the Maps service.
In an effort to further boost its services business, which contributes hundreds of billions of dollars annually, Apple appears poised to make changes to the "pure experience" of its native apps. According to Bloomberg News reporter Mark Gurman...Get the messageApple plans to announce it as early as this month, and it will be officially included in the Apple Maps app this summer.Add an advertising placement mechanismThis move not only signifies the expansion of Apple's advertising business, but also reflects its approach in the face of global regulatory agencies.Suppression of the App Store's revenue-sharing policyUnder these circumstances, Apple is eager to find the next stable and substantial source of revenue growth.
Learning from Google and Yelp: Using keyword bidding to boost retailer exposure
While Apple has not officially responded, this rumor has been brewing for years. According to Mark Gurman's speculation, Apple Maps' advertising model is expected to be similar to Google Maps or Yelp, including:
• Keyword bidding:When users enter "coffee shop", "auto repair shop" or "restaurant" in the map search bar, the location information of brands or local retailers that have paid for advertising will be displayed at the top of the search results or presented with a more prominent mark on the map.
• Precision delivery:By combining the user's geographic location and search intent, map information with commercial conversion value is provided.
In fact, Apple already has ads in the App Store search results, the Today tab, and the Apple News app. Therefore, bringing this mature advertising revenue-sharing model to the frequently used Maps app is a very natural and low-risk business extension for Apple.
Transformation under Regulatory Pressure: New Growth Drivers for the Service Business Unit
Apple's aggressive push for map ads at this time has a fairly clear financial motive.
Currently, Apple's services division contributes approximately $1000 billion in revenue annually, accounting for about 25% of the company's total annual revenue. However, this "cash cow" is currently facing strong challenges from global regulatory agencies, including the EU's Digital Markets Act (DMA) and the US Department of Justice's antitrust investigation, both of which are forcing Apple to either open up a third-party software marketplace or reduce its revenue share.
To offset potential App Store revenue losses, map advertising represents a huge untapped market. Given the over 10 billion active iPhone devices globally, the localized advertising revenue generated by map ads could effectively raise the revenue ceiling for the services business.
Analysis of viewpoints
While Apple's inclusion of ads in Maps is a necessary business decision, it's a double-edged sword for its brand image.
In the past, Apple Maps has always used "no ads, no tracking, and a clean interface" as its main selling points against Google Maps. Once it implements a bidding system, ensuring the "fairness" and "usability" of search results will become a major challenge.
After all, if users search for "nearest gas stations" but are prioritized by advertising for franchised stores 3 kilometers away instead of the gas station around the corner, this difference in experience could very likely cause users to quickly migrate to other navigation tools.
However, judging from Apple News and the App Store, Apple is generally very restrained in its visual presentation of ads, striving not to disrupt the overall design of the system. For the average user, if ads offer discounts or useful information in the form of "recommended stores," their acceptance rate might not be too low. The key to this "map defense battle" lies in whether Apple can earn advertising profits while still maintaining its touted "human-centered" user experience.
