Apple plans to introduce ads in Maps app by summer, letting businesses bid for placements to boost services revenue, following trends like Google Maps.
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Phone manufacturers rarely miss a chance to cut costs and boost profits, whether by ditching chargers or adding ads. According to Bloomberg, Apple is preparing to introduce advertising into its Maps app. The announcement is expected by the end of March, with ads potentially appearing on devices and online as early as summer.
Navigation services like Google Maps, Yelp, and Bing Maps already show ads to users, so Apple won't be the only player monetizing maps. The company plans to let businesses bid for ad placements in search results. For example, a restaurant bidding on the term "burger" could land at the top of search results, above regular listings.
This move would help Apple generate more profit from its services, which bring in over $100 billion annually and account for more than a quarter of the company's sales. Against a backdrop of regulatory pressure and partner discontent over the App Store and deals with Google, new advertising opportunities could become a key revenue stream.
Apple's advertising division, previously called Search Ads and now Apple Ads, could bring in around $8.5 billion by 2026. The company is also increasing ad volume in the App Store, News app, and podcast service.
Apple is gradually rolling out ads across iOS, which might frustrate users who pay premium prices for its devices. Prominent ads in search results can be distracting and intrusive, though the company promises to use artificial intelligence for relevant ad displays. Nevertheless, placing ads on iPhone screens for profit risks alienating customers.