The Contradiction of Apple's New Embrace of Ads
In the age of tech giants, it’s common to see them take opposite stances on certain issues. One example of this is Amazon and Google’s battle to win over consumers. In this case, Apple has taken the stance that advertising doesn’t work, but now they’re opening up their own ad platform so developers can make some money off of apps that are typically free to download and use.
There Are Two Types of Ads
There are two main types of ads: 1) Brand advertising and 2) Direct response marketing. While both have their advantages, one is more popular in the world today. In short, brand advertising is what you would typically see from TV commercials and billboards: Brands promote themselves by telling the audience who they are and why they should buy their products/services. The difference between this type of advertisement and direct response marketing is that direct response marketing focuses on lead generation rather than branding. This means that brands don't need to persuade consumers to purchase from them; instead, they just need to generate the lead which would then prompt the customer to get in contact with the company for purchases. However, this does not mean that these two styles of advertisements cannot coexist. Apple has shown us just how well the two can exist together when it updated its iOS platform (the software for iPhone, iPad, and iPod touch). When updating the ad policy, Apple opened up three new advertising formats: 1) An iAd unit will be a full-screen banner ad at the top of a News Feed or app screen. 2) Apple Search Ads will let advertisers use search keywords to display ads within App Store search results. 3) Sponsored Messages will be an opt-in feature where an advertiser can send messages directly to your device inbox, similar to Facebook or Twitter sponsored posts. These updates show that there is a demand for both forms of advertising as app developers want ways to advertise within their apps and developers also want new ways to find customers through search engine searches such as Google Search, Bing Search, Yahoo! Search, or even DuckDuckGo. However, these changes did come with some negative feedback due to the fact that iOS users now may be flooded with ads if they are playing games like Candy Crush Saga. Another downside of the update is that with each type of ad comes a new way to track users' activities, making it possible for advertisers to figure out which apps we're using most often and how much time we spend using them. Many people do not feel comfortable with being tracked this closely and worry about privacy implications. With these concerns in mind, Apple has included a privacy setting that lets users turn off all of the different ad types. Overall, Apple's update shows promise for future success but needs to address concerns before things go too far.
All about user experience
Apple executives made it clear that the company is not interested in turning users into product. That makes sense for a company with millions of loyal, passionate users who often form emotional attachments to their iPhones. Nevertheless, Apple is intent on finding ways to extract money from its products and services - something which has been difficult as ads still represent a relatively small percentage of total revenue for the company (currently under 5% according to estimates). The push towards advertising, therefore, is not about attracting new users and has never been about technology or art; instead it reflects the basic business necessity for the company to maintain its ability to be profitable. There are two reasons for this. First, the company needs some other source of profit outside of hardware sales because those are now trending downwards: the average iPhone sells at a slight discount compared to last year, but has reached nearly $1 billion per day in sales so far this quarter. Second: As long as revenues depend on selling hardware at prices people can afford then every dollar taken away by paying customers through price hikes will have an impact on Apple’s bottom line. Ultimately, without changes in how the company does business Apple will face a grim future: slowing hardware sales combined with escalating costs means higher margins are needed than ever before if the company wants to remain competitive. The result? Increased reliance on products like AirPods and HomePod where customers pay more up front but get no choice over what they're paying for - e.g., apps, ringtones, extra iCloud storage space etcetera - while becoming reliant on advertising as well since those might help keep margins high enough.
What Happens Next?
Apple has always been critical of ads. Now it seems that they are embracing them by rolling out an ads section in their app store. But why now? Maybe it's because ads will help with the downfall that may come with there not being any updates to the iPhone. Since these new apps won't be able to get updates, they won't have access to all the bugs fixes that are necessary to compete with other operating systems and programs, like Android and Windows 10 Mobile which can get updates and be constantly updated. And since Apple has released their 4th-generation iPhone, it is looking like a lot less people are purchasing new iPhones now too. So ads could be one way for them to recoup some of those losses. Apple wants you to know how great they are and they want you to buy their products so badly that they're willing to do anything at this point. The question is what happens next. Will they also start accepting other advertisements as well or just stick to app advertising only? What about tv commercials or print ads? It doesn't seem like this company knows what its identity really is anymore. They've taken on the role of innovator when it comes to design but when it comes to technology, they're always playing catch up. With Microsoft releasing Windows 10 Mobile and Google releasing Android Nougat last year, it feels like time is running out for Apple. They need something big soon or else they'll be left behind in a crowded market full of competitors. And if that's not enough pressure, according to Market watch analysts say that this coming holiday season might show a decrease in sales for the first time ever for Apple! There was a time when everyone wanted an Apple product. Now that's changing as more and more consumers find themselves drawn to cheaper models like Amazon Fire TV Stick or Roku Streaming Stick rather than paying hundreds of dollars for an Apple TV. With consumers increasingly seeing themselves as customers rather than fanboys, it's going to be interesting to see where this goes from here. One thing we know for sure is that things are changing in Silicon Valley and with Apple.
Things to Remember
1. It is important to know that all forms of media have ads in one form or another, and all content creators rely on income from advertisements. For example, television shows need advertising sponsors to stay on the air for weeks at a time, radio stations get a great deal of their funding from advertisers and YouTube personalities need sponsored videos to continue making content.
2. It is also important to recognize that advertisements are not the problem- it is how they are executed that should be changed. The sad truth is that most people don't pay attention to ads because they find them boring and uninteresting, so companies must find ways to create more engaging ads with compelling messages. 3. If anything, the new embrace of digital advertising will allow people more freedom when viewing content online because instead of having to search around for an ad blocker in order to make it go away, the ad will come into view and then disappear like any other webpage would do once a person has scrolled past it. 4. What this means is that there will be no way to block advertisements, but rather, readers can choose whether or not they want to see them. Instead of blocking ads altogether and hurting those who rely on them for income, the new plan actually offers a better option by providing users with more control over what they want to see. 5. So what does this mean? Well, it means that internet users now have access to even more websites than before (since some sites require payment in order to provide ad-free browsing), while simultaneously opening up doors for content creators who want the opportunity to reach out directly to viewers without restrictions placed upon their free speech by corporations who may hold different beliefs than themselves. 6. The only downside is that many feel as though the changes could increase the amount of time spent reading unwanted ads- although again, this will depend on user preferences. 7. For example, if someone spends 30 minutes per day reading articles on various topics, and 10 minutes per day scrolling through social media feeds, then they may spend an additional 20 minutes each day reading ads if they're set to display automatically. 8. But others argue that these concerns are unfounded because automatic ads only display after a few seconds after scrolling by as opposed to instantly popping up when scrolling through a website or app; thus leading some experts to conclude that the issue stems from impatience rather than annoyance with seeing too many advertisements. 9. In conclusion, what this change does is offer benefits to both consumers and content creators alike. On one hand, consumers now have greater control over which ads they wish to see, meaning that they can select based on whichever criteria appeal to them- including the ability to scroll past an advertisement without it bothering them whatsoever. 10. On the other hand, content creators have been given a platform where they can share their ideas freely without fear of being censored by corporate entities looking to keep their products on top- meaning that anyone with something interesting to say will be able to take advantage of an easy way of reaching millions of people worldwide instantaneously. 11. From the perspective of a consumer, what this all boils down to is an experience that is more personal and tailored to the individual- one that provides them with ads they might actually be interested in seeing. 12. From the perspective of a content creator, it means a chance to be heard without having to compromise their beliefs in order to please wealthy corporations. 13. Put simply, what this new ad system will offer is more choice for consumers and more fair treatment for content creators- two things that are very important for an industry in constant evolution.