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Is Apple Killing your Mobile Advertisments?

Is Apple Killing your Mobile Advertisments?

The Crippling Effects of Ad Blocking in iOS 9Apple Advertisments

Apple has a strangle hold on your ads. They are binding the hands of mobile publishers, developers and advertisers. And they are hacking into your profit. Apple’s newest update of iOS blocks any and all ads in Safari. Many believe that Apple has declared war on mobile advertisers with the coming release of iOS 9 and its new ad-blocking technology. But don’t despair, there’s still hope.

iOS 9 users have to opt out of ads on their devices in order to enable ad block.  There will also be certain types of  ads the user can choose to disable. This could mean a whole set of new challenges for your business to keep from losing a large source of your revenue. However, if businesses can redefine the meaning of ads as helpful instead of harassing, there’s still a chance audiences may want to see them.

But what could motivate Apple to bring this plague down on your business? That’s easy, money. Apple makes almost no money off the Internet but instead its revenue source comes from mobile apps in the Apple app store.  Therefore, they aren’t losing money by blocking your ads on their web browser. For many businesses this could cause detrimental effects.

What Blocking Ads in Safari means for your Business

Google sales have long overtaken Apple sales but 2015 is the year that all changed.  iPhone sales surpassed Google’s Android national sales for the first time since 2012. This only further rubs salt into the wound Apple created with their (not so official) announcement of ad blocking in iOS 9. While Google’s worldwide market shares still far surpass Apple’s worldwide market shares, 75% of Google’s mobile advertising revenue  still comes from iOS devices according to Goldman Sachs.

What does this statistic mean to you? It means that with iOS 9 ad blocking, advertisers will have a problem capturing mobile traffic to keep up your current conversions through Google ads. To help counteract this, professional technology and marketing firms can find creative ways to make up lost profit and adapt business to the fit into the changing technological ecosystem. Sometimes an expert’s touch is all you need.

The anticipation has already started having negative affects on advertisers. Criteo, an advertising display company, has had its stock fall 7% based off Apple’s expected plans for iOS 9. As the tremor of change rocks the digital advertising world, is there still hope for your mobile efforts? I believe there is.

How the Future of Mobile will Develop after Safari Ad Blocking is Initiated

Once the news broke about iOS 9’s built in ad blocking technology, the advertising world went a little bonkers. But Apple has a plan in the works to grab those marketers that were using Google mobile advertising. iAds, Apple’s targeted ad delivery system has been around for a while but often gives businesses mixed results.

iAds:

  • Can’t be bypassed or removed by ad blocking software so while Google may lose a chunk of money, your business won’t suffer
  • A 30% cut from your ads
  • Allow for targets based on location, gender, interests and more

You may be able to let out a very small sigh of relief knowing that Apple is at least trying to provide a way to make up for lost profits. However, it doesn’t mean that the marketing world won’t see reaching affects from iOS 9. Many developers and businesses might decide not to optimize websites for Safari when they can’t sell advertisements or have their ads seen.  This backlash could cause Apple to start breaking their one promise to users, to provide the best experience possible.

Unclear on How you’ll Maneuver around iOS 9. Let Biznet Digital Help you Today

For over 20 years Biznet Digital has been evolving with technology to provide an innovative and progressive experience to our clients. We understand that technology is an ever moving target, and in order for your business to compete you must look beyond the present and into the future to maintain your competitive edge. Our expert development and marketing teams create a personalized plan that is designed to fit your business and your budget.

It’s time to look toward the future. Learn how Biznet Digital can prepare you for iOS 9 and work to increase your mobile ROI today.

  • David Robbins

    Great article Kevin. Another possible piece of the Apple strategy is that ads will be funneled only via the upcoming news service that Apple plans on launching. The attack strategy against Google seems to be “destroy ad money, starve Google”. Facebook is also planning on offering a news service that will cater the news media outlets who are currently losing money with their own online advertising strategies. My theory – Facebook and Apple wish to be the funnel by which online consumers receive news, and therefore ads.

    You are correct in that Apple does not cater to the Internet; rather, download an app. Facebook would like to become the Internet and show you ads.