After the Emmys bring it home, “Ted Lasso” may soon be raking in advertising dollars. According to a new report, Apple TV+ is exploring options to introduce targeted ads based on user data as early as 2023.
Months later, when the digital giant began building demand-side platforms, or DSPs, that could better focus ads toward their audiences, Digiday reported That Apple executives, led by Ad Platform VP Todd Teresi, are in “exploratory discussions” with media agencies about selling ad time on Apple TV+.
An Apple TV rep did not immediately respond to TheWrap for comment.
The streaming service has already hosted commercials with its coverage of Major League Baseball, and a 10-year deal with other sports programming such as Major League Soccer was previously seen as a natural advertising opportunity. But now there are talks about bundling ads into its core content, Digiday said.
Citing unnamed agency sources, the report claims that Apple has not asked media agencies to prepare client dollars for the current quarter, which suggests that the move will take place early next year.
“Anything that will open premium inventory [in connected TV or streaming] Will be a positive,” an executive was quoted as saying. “The last bastion is the Apple TV. Apple is probably going to have a pretty good advertising experience with low ad load. They’re actually pretty diverse in terms of revenue streams already, so there’s less pressure to fit a lot of ads.” .
Another executive warned that Apple would not step down unless “there is a significant opportunity” and if that opportunity “does not jeopardize their relationships with their consumers.”
Right now, Apple’s primary sources of advertising revenue are search ads on the App Store and an agreement with NBCUniversal that places ads on apps like Apple News. JPMorgan predicts that this could rise to $6 billion, bringing in $4 billion annually.
To expand its advertising dollars by offering targeted ads on its streaming service, however, Apple will have to tread delicately, given its earlier statements surrounding user privacy.
A previous attempt to pull in more ad revenue, iAd, a premium service introduced with the iPad more than a decade ago, failed. Industry observers said the platform was ahead of its time, but it was shut down in 2016 because Apple’s leaders did not recognize the differences between the media industry and technology, Digiday wrote, hoping to be able to name its price. .
Apple appears to have learned from that experience in its recent discussions, the outlet reported.
