It’s likely that Apple search ads will generate $2 billion in revenue for the company in 2020, according to Apple Insider.The report says that Apple’s search ads are expected  to bring in $500 million this year, with revenues quadrupling in the next two years.

So why is this a big deal for app marketers?  Apple search ads for the App Store help drive app discovery and installs for app marketers, which gives advertisers the ability to set daily or total campaign budgets based on keyword search terms.  Since launching the ad units in the U.S. in September 2016, Apple has yet to release any numbers specifying its search ad revenue.  It’s possible that, with this estimate, Apple’s search ads may deliver as much as $2 billion annually two years from now is proof that more and more app marketers are making the ad units part of their search strategies.

According to Apple Insider, the 2020 Apple search ad revenue forcast is based on a note seen by an analyst at Bernstein, indicating that it is a “conservative” estimate.

“Should the goals be reached, Search Ads alone will generate as much revenue as Apple Music did in fiscal year 2017, but given that it has to pay almost nothing for acquisition costs, the margins are dramatically higher,” reports Apple Insider. The same analyst said Apple’s search ad business is expected to reach $500 million by the end of this year.

Here’s more information on Apple Search Ads:

  • Apple search ads are created automatically using images and copy found within the metadata supplied by the app publisher or developer.
  • Advertisers can separate search ad bids by device, creating separate campaigns for ads to appear on iPhones or iPads.
  • Apple provides advertisers with a keyword suggestion tool, popularity indicators and negative keyword capabilities. Targeting features also include customer type, gender, age and location.

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