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| Apple boosts ad activity while damaging Facebook's iPhone changes |
Apple plans to expand its ad campaigns while introducing new privacy rules for iPhones that could weaken the businesses of its competitors, including Facebook, according to a Financial Times report on Thursday.
IPhone maker sells search ads through its app store, so developers can pay for better results.
Apple is now planning to add a second ad space in the "Suggested apps" section of the App Store search page.
This new feature will roll out later this month and will allow advertisers to promote their apps on the web without responding to specific searches.
The expansion is the first clear sign that the company plans to grow its own advertising business at the same time, and the company is transforming the larger, $ 350 billion digital advertising industry led by Facebook and Google.
The upcoming iOS 14.5 update prevents apps and advertisers from collecting data about iPhone users without their explicit consent.
Most users are expected to refuse to follow, which has severely affected the way the mobile advertising industry operates.
Apple said: These changes have improved user privacy, but some critics have accused the company of wanting to grow its thriving ad business.
Mark Zuckerberg, CEO of Facebook (Mark Zuckerberg), said, "Apple could say it is doing this to help people, but it is clear that these steps seek to advance their competing interests."
Apple has always wanted to be the leader in mobile advertising.
The company acquired mobile advertising company Quattro Wireless for $ 275 million in 2010, but Google was defeated after Google auctioned $ 750 million on AdMob.
In the same year he started iAd, a multi-year initiative to start an advertising company. The minimum contract price at launch of iAd was $ 1 million, but demand was halved within a year.
Apple has always tried to maintain creative control over advertising and has been keen on sharing user data with marketers.
Two years later, Apple lowered the minimum contract price to $ 50 and halted all business in early 2016.
Google and Facebook are both the biggest players in the market, but Apple CEO Tim Cook has repeatedly criticized his business model for being unsustainable because they collect large amounts of data to determine market positioning.
According to Analytics, Apple's current annual advertising revenue through the App Store search network is around $ 2 billion, with an 80% profit margin. Apple also sells stocks and ads in its messaging apps.