Apple's big “ad” business is mostly cashing their $20B check from Google
In what was mostly a disappointing earnings report with declining iPhones sales, Apple was quick to point out that its services segment notched record revenue. Advertising, the company keeps saying, is helping drive those services numbers.
But Business Insider’s Peter Kafka reports Apple’s ad business isn’t what normal people think of when they think of ads.
While Apple does have a more traditional ads business, there’s a huge “third-party licensing arrangement" it tucks into its ad revenue line. In 2022, Google paid Apple more than $20 billion to be the default search on iPhones and other Apple devices, according to antitrust documents.
Traditional ads make up about 6% of Apple's annual services revenue, while the Google deal brings in more than 20%.
While Apple does have a more traditional ads business, there’s a huge “third-party licensing arrangement" it tucks into its ad revenue line. In 2022, Google paid Apple more than $20 billion to be the default search on iPhones and other Apple devices, according to antitrust documents.
Traditional ads make up about 6% of Apple's annual services revenue, while the Google deal brings in more than 20%.
