Apple Expands Advertising to Maps App

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Apple is preparing to launch an advertising program within its Maps application as part of an ongoing effort to increase revenue from its services division. The new advertising system will function similarly to Google Maps, allowing businesses to bid on search terms and have their ads displayed at the top of relevant location-based queries.

Why it matters

This move represents Apple's latest push to diversify its revenue streams beyond hardware sales and strengthen its lucrative services business, which now accounts for over a quarter of the company's total sales. However, the expansion of advertising could face regulatory scrutiny and challenges as Apple navigates changes in the tech landscape.

The details

Under the planned system, businesses such as restaurants will be able to bid on specific search terms relevant to their offerings. For example, a restaurant could bid on the term 'sushi,' and when a user searches for that type of cuisine, an advertisement for the location of the highest bidder would appear at the top of the search results. This approach mirrors advertising strategies already employed by Google and Yelp Inc. in their respective platforms.

• Apple plans to launch the new advertising program within its Maps application as early as this summer across multiple platforms, including the iPhone and other Apple devices, as well as the web version of Maps.
• The Maps advertising initiative follows Apple's creation of additional advertising slots within the App Store and the implementation of changes to its podcast service designed to facilitate easier integration of advertising content.

What’s next

Apple is expected to officially announce the new advertising program within its Maps application as early as next week.