Is Apple Poised To Expand Into Search?

Is Apple Poised To Expand Into Search?

Recently, Tyler Bishop, CMO of Ezoic, sat down and interviewed Simon Andrews and discussed topics ranging from the death of cookies, Google Anti-Trust, Facebook vs. Australia, and Apple’s potential to expand.

You can watch the full interview covering all the aforementioned topics below:

The transcription below is covering Apple’s expansion. If you’d like to fast forward to this part of the interview, go to 28:50 on the video.

Tyler:

It is quite the predicament because where we’ve seen people try to come together in terms of forming groups or bringing all parties to the table. In many cases, we’ve got trade organizations, either some with almost no authority, power, or influence, or those that have essentially been organized or infiltrated by one of the major parties, on either end. And that’s the challenge of it. And I guess that brings us full circle because I want to come back to something that we started with as it relates to these big parties and kind of the jocking for position, if you will, amongst each other, as it relates to something like the death of third party data or things along those lines in one party that is specific really specifically responsible for this is Apple.

So they’ve seen a massive increase in their stock price this year, although it’s certainly taken a tumble the last couple of days, along with most of those other parties we’ve spent a lot of time discussing today. So they appear to be walling off their garden even more and eyeing a piece of, the other party’s pie, specifically advertising and maybe search. So what are the chances that this time next year, Apple’s competing more directly with Google or Facebook as a search engine and or an ad platform?

Andrew:

I think it’s very likely, we talked about a few years. It makes no sense. They’re not applying in advertising because we think about the Apple business with its two parts again. So one part of it is you and I paying a thousand dollars for the latest iPhone. The reason we pay that is that all the best apps and the best content choose to be on the iOS platform. So the other people are important to Apple as well, to their firms, other developers who develop those apps, developers who develop those apps, two real functions, one they’re going to acquire customers. She couldn’t do with advertising and to then monetize those customers, you know, quite often for advertising as well. So advertising is so important to the Apple network and it changed with IDFA is not privacy, which yeah, I think is, you know, privacy is a good thing to look at the clumsy where they talk about clothing idea, phase-down has a real impact because it means, but any app developer, one is going to be much harder and more expensive to find new customers.

Andrew: (continued)

And then when you’ve got them, you’d find it much harder to monetize those customers with advertising as well. So I think at some point Apple realized, well, you know, we want to do privacy. It’s the right thing to do. But we need to protect ourselves. So in a situation where they, you know, closed down, lots of options caused lots of problems and then, you know, redresses a coverage from writing and saved the day. Cause, Hey, we’ve got an advertising solution, which does lots of things that you know, would work really well. So talking about being contextual, the data they’ve got, you can look at how they run the search ads in the App Store, all of the tracking and they’re going to stay. So they’ve got some real advantages. So I think it would be ridiculous not to. And if you’re trying to go from a $2 trillion company to a $3 trillion company, you need new revenue.

Andrew: (continued)

So advertising again, I keep telling people, you know, people always have plenty of appetites. It’s a great business model. You know, you can generate lots of money. We’ve talked about Amazon, Google, etc. If they thought, why would Apple sit there and provide in a privacy friendly way, a way that their developers can acquire customers really well using that data and pay a tax to Apple for doing so and monetize the users within the iOS system and pay tax for, it seems like perfect sense to me, an average sort of wins from there and also for Apple, what it does is take some of the steam away from Facebook and Google and Amazon who do very well on the iOS platform without Apple getting so long by saying, yes, I agree with you. I think this time next year there’ll be a major player.

Tyler:

It’s very interesting because you bring up an eloquent point about why wouldn’t they want to pursue some of these things. And I think recently you’ve seen them start to push the envelope on many of these items. Epic games is a very public organization. Now that they have a a lawsuit against, Apple for essentially the mechanism in which they’ve published their games to specifically Fortnight to the Apple App Store. And it was announced yesterday that Apple is basically counter suing. And now you’ve got these major parties that are sort of warring with each other, Epic, obviously not as large as Apple, but still quite a major player. If you’re a publisher right now, certainly even if we look at some of the largest publishing conglomerates, most are not anywhere near the size of someone like Epic games. How do you compete? How do you put pressure on these parties in, in any way, shape or form given the power and the dominance that they seem to hold?

Andrew:

You can’t really cause you’re too small. You, but you want someone like Epic and also Spotify are working with European regulators to complain about the same thing that why should Apple take 30% of every transaction from there? So if you’re a publisher, you sit there and think, well, I can’t buy that, but I’m going to support those guys, you know, or I can’t. So I think Spotify in the app, it’s sort of got good press coverage because it’s in everyone’s interest that model’s broken down. And if you’re Apple, you can’t afford to make any more exceptions. Cause I think there have been the other sections I’ve made in the past, you know, quietly Epic. They’ve made it such a big thing that they have to try and win this because if they go from 30% with Epic to 20% or 10%, they have to do that for everybody else.

Andrew: (continued)

So that’s a huge threat, which again, because that’s our advertising point of view, maybe trying to think from different business models. Cause the one we’ve got now might be a little bit precious because when he started out, I think this is a good thing for everybody because it makes it very safe. It’s very efficient to late some money, whatever. But when he (Steve Jobs) started the iPhone in 2007, wasn’t it? I think, yeah, the idea was taking a 30% tax class, quite unreasonable. You look at the size of it now, and that is a huge amount of money and it just feels greedy, I think. So I think if you’re a publisher you’re satellite shouting cheering on Spotify, cheering on Epic, and hoping they can actually get some concessions from you.

Tyler:

Yeah. I agree with you. And I think that is certainly the case. And the point about as things scale over time, they start to become more apparent in terms of how lucrative some of these businesses have become or can become.

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