Recent reports from market research firms show that global smartphone sales are gradually declining. One of the reasons for that is the fact that premium smartphones are getting more expensive which means users are holding on to their expensive handsets for longer than they used to. This means there’s less money to be made in high-end smartphones now where profit margins are generally higher and for a company like Apple that doesn’t really make low-end, or mid-range devices for that matter, this presents a challenge. A new report claims Apple is looking to tackle this challenge by focusing more on its ad sales business.
The Wall Street Journal reports that Apple wants to expand its ad sales business and is meeting potential advertisers to see if there’s interest in an Apple ad network.
The report mentions that the company has met with Pinterest, Snap, and other companies to see if they would be interested in spending their advertising dollars on an Apple ad network. The network would serve ads across their collective apps on iOS. Apple would then share the revenue with the apps that display ads and that the amount of revenue share may vary by customer.
Apple isn’t new to the idea of selling ads in apps. It already sells some based on search terms in the App Store and that has proven to be a revenue stream worth over a billion dollars for the company in 2017.
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