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Apple boosts ad activity while damaging Facebook's iPhone changes


 Apple boosts ad activity while damaging Facebook's iPhone changes

Apple is planning to expand ad activity as it introduces new privacy rules for iPhones that could cripple that activity for its competitors, including Facebook, the Financial Times reported on Thursday.

The iPhone maker sells search ads to its app store, allowing developers to pay for a better result.

Apple boosts ad activity while damaging Facebook's iPhone changes

Apple is now planning to add a second ad slot in the suggested apps section of the app store's search page.

This new opening is rolling out by the end of the month, and it allows advertisers to promote their apps across the entire network, rather than responding to specific searches.

The expansion is the first tangible sign that the company plans to boost its own advertising business at the same time as it transforms the broader $ 350 billion digital advertising industry led by Facebook and Google.

The upcoming iOS 14.5 update blocks apps and advertisers from collecting data about iPhone users without their explicit consent.

Most users are expected to refuse to be tracked, dealing a huge blow to how the mobile advertising industry works.

Apple said: The changes improve the privacy of its users, but some critics have accused the company of hoping to boost its nascent advertising business.

Mark Zuckerberg, CEO of Facebook, said: “Apple might say it is doing this to help people, but it is clear that the steps follow its competitive interests.”

Apple has always wanted to be a big player in mobile advertising.

It paid $ 275 million in 2010 to acquire Quattro Wireless, a mobile advertising company after it was defeated by Google in bidding for $ 750 million on AdMob.

In the same year, it launched iAd, a multi-year effort to build an ad company, and iAd at launch had a minimum contract price of $ 1 million but cut requirements in half within a year.

Apple has attempted to maintain creative control over ads and has been conservative in sharing user data with marketers.

Apple lowered the minimum contract to just $ 50 two years later, and the entire effort was stopped in early 2016.

Both Google and Facebook are the biggest players in the market, but Tim Cook, CEO of Apple, has repeatedly attacked their business models as unsustainable because of how they accumulate so much data for targeting.

Analytics estimates that Apple currently earns about $ 2 billion annually from ads via the search network in the App Store, with margins of 80 percent, and Apple also sells ads in stock and news apps.