Apple Maps to show ads in US, Canada: What this means for users
Apple will introduce paid advertisements on Apple Maps in the US and Canada this summer, marking a significant shift for a company that has stayed out of the ad business. The company said that for the first time, businesses will be able to pay to have their listings appear at the top of Apple Maps search results – above the regular, unpaid results that users currently see. Advertisers can claim their physical location through Apple's business tools, which the company also said it plans to revamp next month.
Why Apple is doing this
Apple’s services business – which includes the App Store, Apple Music, and iCloud – has become one of its most important growth engines. According to news agency Reuters, Maps advertising could add yet another revenue stream at a time when some of Apple’s biggest earners are under pressure. For example, the billions Google pays Apple annually to remain the default search engine on iPhones is facing regulatory scrutiny even as the rise of AI is eating into traditional search traffic. App Store commissions are also being challenged by regulators in Europe, and the company even slashed them in China.
“The introduction of ads in Apple Maps could represent an incremental opportunity for Apple's services business. Apple gets much of its growth and profits from the services business and this could add another layer of growth,” Gil Luria, analyst at D.A. Davidson, was quoted as saying.
The report also says that this move puts Apple in more direct competition with Google and Meta for local advertising dollars, a market Google has dominated for years through Google Maps and Search.
What this means for users
Apple has long marketed itself as the privacy-first alternative to companies like Google and Meta, whose business models depend heavily on harvesting user data for ads. Now, it is entering that same arena but it has addressed concerns.
The company said its Maps ads will maintain the same privacy controls users are used to. Specifically, Apple stated that a user's location and the ads they view will not be linked to their Apple account. Moreover, users’ personal data stays on the device, and the data is not collected or stored by Apple, and not shared with third parties.
Why Apple is doing this
Apple’s services business – which includes the App Store, Apple Music, and iCloud – has become one of its most important growth engines. According to news agency Reuters, Maps advertising could add yet another revenue stream at a time when some of Apple’s biggest earners are under pressure. For example, the billions Google pays Apple annually to remain the default search engine on iPhones is facing regulatory scrutiny even as the rise of AI is eating into traditional search traffic. App Store commissions are also being challenged by regulators in Europe, and the company even slashed them in China.
“The introduction of ads in Apple Maps could represent an incremental opportunity for Apple's services business. Apple gets much of its growth and profits from the services business and this could add another layer of growth,” Gil Luria, analyst at D.A. Davidson, was quoted as saying.
The report also says that this move puts Apple in more direct competition with Google and Meta for local advertising dollars, a market Google has dominated for years through Google Maps and Search.
What this means for users
Apple has long marketed itself as the privacy-first alternative to companies like Google and Meta, whose business models depend heavily on harvesting user data for ads. Now, it is entering that same arena but it has addressed concerns.
The company said its Maps ads will maintain the same privacy controls users are used to. Specifically, Apple stated that a user's location and the ads they view will not be linked to their Apple account. Moreover, users’ personal data stays on the device, and the data is not collected or stored by Apple, and not shared with third parties.
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