After winning its succession of Emmys, “Ted Lasso”Could soon be earning a lot of advertising dollars. According to a report, Apple TV+ is looking at options to offer targeted ads based upon user data starting in 2023.
After the digital giant started to build a demand side platform (or DSP) that could better target ads toward its viewers, it took months before it was ready. Digiday reported Apple executives are being held by Todd Teresi (VP of Ad Platforms), who is also the VP of Apple. “exploratory discussions”Talk to media agencies about advertising time on Apple TV+.
Reps from Apple TV did not respond immediately to a request for comment.
Already, ads have been hosted on the streaming service with Major League Baseball coverage. Other sports programming such as its 10-year agreement with Major League Soccer has also been featured. Digiday stated that talks are underway to bundle ads into the original content.
The report, which cites unnamed agency sources, claimed that Apple has not requested media agencies to have client funds ready for the current quarter. This suggests that the move could occur in the early part of next year.
“Anything that would open up premium inventory [in connected TV or streaming] would be a positive,”One executive was quoted. “The last bastion is Apple TV. Apple is going to be a very good ad experience with probably a low ad load. They’re already actually very diversified in terms of revenue streams so there’s less pressure to fit lots of ads.”
Another executive warned that Apple won’t take the step unless “there’s a significant opportunity” and if that opportunity wouldn’t “jeopardize the relationship they have with their consumers.”
Right now, Apple’s primary sources of ad revenue are search ads on the App Store and a pact with NBCUniversal that places ads on apps like Apple News. JPMorgan estimates that they bring in $4 billion each year, and JPMorgan anticipates that it could reach $6 billion.
Apple will have to be cautious about introducing targeted ads on the streaming service in order to increase its ad revenue. This is due to its privacy statements.
iAd was a premium service that was introduced with the iPad over a decade ago and failed to bring in more advertising revenue. Industry observers said the platform was ahead of its time, but it shut down in 2016 because Apple’s leaders did not recognize the differences between the media industry and tech, Digiday wrote, expecting to be able to name its own price.
The outlet reported that Apple seems to have taken lessons from this experience in recent discussions.