Apple's search advertising revenue is expected to reach 2 billion in 2020

Apple's search advertising revenue is expected to reach 2 billion in 2020

Analysts expect Apple search ad revenue to reach $500 million this year and grow to $2 billion in 2020

Analysts recently predicted in a report that Apple Search advertising will bring in $500 million in revenue this year, rising to $2 billion in 2020.

Apple's search ads currently appear at the top of the App Store page, and app developers can buy specific keywords to have their ads appear where they want, similar to Google 's web search ads.

It is Bernstein analyst Toni Sacconaghi who predicts Apple's search ads will bring in $500 million in revenue this year. In a report on Monday, he said that search ads could bring Apple more than $500 million in revenue this year.

In Sacconaghi's view, the revenue brought by search advertising to Apple will continue to increase in the future. In 2020, its revenue may increase to 2 billion US dollars, which is four times this year's revenue.

In an interview, Tony Sacconaghi also said that unlike Google and Amazon 's search ads, Apple's search ads currently only display one on the homepage, and it may provide more advertising space in the future.

Tony Sacconaghi also mentioned in the interview that in some markets with large consumer groups, Apple's App Store does not provide advertisements, which means that Apple's search advertising business still has a lot of room for development in the future.

Tony Sacconaghi also said in the report that if Apple's search advertising business can achieve the scale of development he expects, the scale of this business in 2020 will be comparable to that of Apple Music last year, but with higher gross profit margins.

Apple is currently vigorously developing service businesses such as Apple Music to offset the impact of declining sales of hardware products such as the iPhone. If the development of its search advertising business meets Tony Sacconaghi's expectations, Apple's service business revenue target of US$49 billion by the end of 2020 can be achieved, and may even exceed US$49 billion.

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