4 ms·

A huge part of Apple’s positive incentive structure was the fact that they didn’t do ads. But now that they are getting into the ad space that incentive struct

A huge part of Apple’s positive incentive structure was the fact that they didn’t do ads. But now that they are getting into the ad space that incentive structure benefit pretty much crumbles away.

giobox 4y ago
I have huge concerns about this, I think it's really hard for any publicly traded company who gets into ad-tech not to end up making some questionable choices. The incentive structure in the ad business is such that no matter how strong a core org you think you have, it likely corrupts over time. While Apple's track record on privacy is commendable, Tim loves (and needs to keep shareholders happy) a good Services growth story. It's also clear at this point, the most profitable ads in the industry are the ones that most take advantage of personal data - this isn't a secret. The difference in profitability can be stark too, which is why I worry so much about the incentive structure.
moreira 4y ago
You might be surprised to know that Apple has been doing ads for over a decade. [0] They‘ve had ads for a long time, and still do - App Store search ads[1] and Apple News ads, to my knowledge. [0]: https://en.m.wikipedia.org/wiki/IAd https://en.m.wikipedia.org/wiki/IAd [1]: https://searchads.apple.com/ https://searchads.apple.com/
- nvrspyx 4y ago
  Let's not forget that App Store search ads replaced iAds, which was an in-app ad network. I assume that it was shut down because of too much competition in the space, but perhaps we'll see it come full circle as Apple diminishes the "effectiveness" of third-parties.
- lancesells 4y ago
  And there was the Steve Jobs era ad network that has big, interactive type flash ads that Apple had to approve as being "good". I don't remember much except working on a video component of a Geico ad that was mobile only in ~2009.
- yazzku 4y ago
  I don't get where people get that 'Apple didn't do ads'. I'm not even an iOS user and I know that much. Must be drinking unreal levels of kool-aid.
  - kmeisthax 4y ago
    Apple was and is so bad at advertising that people think they didn't do it until recently. Part of it just comes with the territory. Apple is a computer company that prides itself on not only having a sense of taste, but being able to impose that sense of taste on its business partners. This is contrary to the goals of advertisers - tastelessness kind of comes with the territory and advertising inherently messes with the user experience.
- indymike 4y ago
  Also: both the App Store and Apple News cannot be uninstalled on MacOS.
fragmede 4y ago
They were always a marketing company though. See this more as the prodigal son returning to his roots.
- pb7 4y ago
  How is it a marketing company?

giobox 4y ago

I have huge concerns about this, I think it's really hard for any publicly traded company who gets into ad-tech not to end up making some questionable choices. The incentive structure in the ad business is such that no matter how strong a core org you think you have, it likely corrupts over time. While Apple's track record on privacy is commendable, Tim loves (and needs to keep shareholders happy) a good Services growth story. It's also clear at this point, the most profitable ads in the industry are the ones that most take advantage of personal data - this isn't a secret. The difference in profitability can be stark too, which is why I worry so much about the incentive structure.

moreira 4y ago

You might be surprised to know that Apple has been doing ads for over a decade. [0] They‘ve had ads for a long time, and still do - App Store search ads[1] and Apple News ads, to my knowledge. [0]: https://en.m.wikipedia.org/wiki/IAd https://en.m.wikipedia.org/wiki/IAd [1]: https://searchads.apple.com/ https://searchads.apple.com/

nvrspyx 4y ago
Let's not forget that App Store search ads replaced iAds, which was an in-app ad network. I assume that it was shut down because of too much competition in the space, but perhaps we'll see it come full circle as Apple diminishes the "effectiveness" of third-parties.
lancesells 4y ago
And there was the Steve Jobs era ad network that has big, interactive type flash ads that Apple had to approve as being "good". I don't remember much except working on a video component of a Geico ad that was mobile only in ~2009.
yazzku 4y ago
I don't get where people get that 'Apple didn't do ads'. I'm not even an iOS user and I know that much. Must be drinking unreal levels of kool-aid.
- kmeisthax 4y ago
  Apple was and is so bad at advertising that people think they didn't do it until recently. Part of it just comes with the territory. Apple is a computer company that prides itself on not only having a sense of taste, but being able to impose that sense of taste on its business partners. This is contrary to the goals of advertisers - tastelessness kind of comes with the territory and advertising inherently messes with the user experience.
indymike 4y ago
Also: both the App Store and Apple News cannot be uninstalled on MacOS.

fragmede 4y ago

They were always a marketing company though. See this more as the prodigal son returning to his roots.

pb7 4y ago
How is it a marketing company?