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Sponsored App Store searches are expected to generate $ 2 billion in 2020

It doesn't seem like it has all this time, but there are more than two long years since Apple renewed the rules of the App Store, bringing new subscription options and the infamous ones. sponsored searches. Regarding this last point, the adoption of it by the developers was so positive that, on its own, search advertisements are already generating more money than many companies around the world and should continue that way for a long time.

App Store Search Ads

In a note sent to investors and published by CNBC, analyst Toni Sacconaghi (from Bernstein) estimated that sponsored searches on the App Store will generate about $ 500 million in revenue for the company only in 2018 and that this number could simply quadruple in two years, reaching $ 2 billion in 2020.

The most impressive part? The estimate, according to Sacconaghi, is ?conservative? and does not involve any extra efforts on the part of Ma, that is, the company will not make any changes to the resource from now on, nor will it increase prices for developers who want to advertise on store searches. We are talking about a totally spontaneous growth.

To give you an idea, US $ 2 billion corresponds to the total revenue generated by Apple Music in fiscal year 2017, the difference that sponsored searches on the App Store basically do not require any spending for Ma, unlike millionaire contracts for the platform. streaming.

In another logic: if we dismember Apple's service sector, which alone generates more revenue than many companies in the first US scale, we will also have some gigantic App Store operations among them. Even a breakdown of the app store is already in the process of being a billionaire operation in its own right. This says a lot about Apple's current economic strength and leaves us wondering what the consequences will be. Guesses?

via 9to5Mac

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