Apple catches up with Google and Facebook in online advertising

There are reports this morning that the Google-Facebook duopoly in online advertising may be breaking up. According to a study published Tuesday by AssumeApple is gaining ground in digital ads, while Google and Facebook seem to be losing momentum.

A new source of strong revenue for Apple

The study, based on an analysis of the online advertising budgets of more than 100 consumer app companies, shows that Apple’s advertising business benefited from the major iOS 14.5 operating system update in April 2021, which made it harder for companies like Facebook or Snapchat to track users across the internet.

Apple’s search ads allow people to advertise on the iPhone maker’s app store. Q2 advertiser adoption increased nearly 4 percentage points from a year earlier to 94.8%, while Facebook adoption declined 3 percentage points to 82.8%, according to Appsumer. Google’s rate fell by 2 points to 94.8%.

appsumer statistics advertising apple google facebook t2 2022

Apple has “joined the duopoly of Facebook and Google at the head table of advertiser adoption,” according to Appsumer, a company owned by InMobi.

Shumel Lais, chief executive of Appsumer, attributed Apple’s improved position to an increase in app developers willing to shell out big bucks to boost downloads.

In terms of app developers’ overall spending on online advertising (share of wallet), Google remains in the lead with 34%. Facebook is second with 28%, followed by Apple with 15%.

Mark Gurman reported late last month that Apple would start displaying sponsored ads in its Maps, Books and Podcasts apps on the iPhone in 2023. So it would appear that Apple’s market share in search ads is likely to increase beyond its current 15% in the period 2023-2024.

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