Apple is making efforts to distance its mobile operating system from Google’s features, making advancements in the areas of maps, search, and advertising that have set the Big Tech giants on a collision path.
For years, Google has paid Apple billions of dollars yearly to be Safari’s default search provider. As a consequence, more people visit Google, which makes money by selling adverts in the search results. Google’s payment is said to have begun at $1 billion in the first year and increased to between $18 and $20 billion last year. This year, a higher payment is expected.
However, there has been one recent move that does indicate Apple is gearing up to compete more directly with Google: the introduction of Apple Business Connect earlier this month.
In order to enable companies of all sizes “claim their geographical place cards and modify the way vital information displays to more than a billion Apple users,” Apple recently revealed a new tool. Business Connect will attempt to arrange how a company’s information displays throughout Apple’s Messages, Wallet, Siri, and other applications in addition to assisting companies in controlling how they appear in Apple Maps. Additionally, there is a fresh approach for companies to advertise their special offers, discounts, seasonal deals, and more.
Business Connect may be one component of a three-part strategy to take on Google, according to The Financial Times. The introduction of Business Connect in Apple Maps is seen as a direct threat to Google.
This is a direct challenge to Google Maps, which partners with recommendations platform Yelp to offer similar information and makes revenues from advertising and referral fees.
Business Connect goes further by taking advantage of Apple’s operating system to give iOS users unique features, such as seamless integration with Apple Pay or Business Chat, a text-based conversation tool for commerce.
-The Financial Times
Apple’s Search Engine Without Advertisement Would be the Way to Overthrow Google’s Monopoly
Even though this notion has been about for a while, the main concern has always been whether Apple would want to enter what is now a pretty opaque industry. The capacity to provide tailored adverts that take into account our search and online surfing history is a key component of Google’s business strategy. Apple believes this to be too invasive and has worked to prevent it with programs like App Tracking Transparency.
To operate its search engine without customized adverts, Apple, according to one strategy expert, may incur a financial loss.
If Apple could build something that was essentially as good as ‘Google classic’ — Google circa 2010 when it was a simple search engine less optimized for ads revenue — people might just prefer that.
-Josh Koenig, chief strategy officer at Pantheon
Over the years, Apple has steadily expanded its ad business, including a significant increase in App Store advertisements. One prominent recruitment hints that Apple intends to create its ad network, directly competing with Google in a way that respects users’ privacy.
For a position involving “driving the design of the most privacy-forward, sophisticated demand side platform (DSP) possible,” the business recruited former Google and YouTube executive Keith Weisburg. A DSP is a single tool that enables marketers to purchase advertising on many exchanges. The job posting was a sign that Apple aims to create a cutting-edge ad network that would transform how advertisements are delivered to iPhone consumers and exclude outside data brokers.
Currently, Google is the leader in internet advertising, but regulators and Apple are both posing growing threats to its business strategy of maximizing the use of personal data to offer tailored advertisements. There has never been a better moment for a firm that values privacy to go head-to-head with Google, and no one is more suited to accomplish it than Apple.
Source: The Financial Times