After bringing home its passel of Emmys, “Ted Lasso” could soon be reeling in ad dollars. Apple TV+ is exploring options to introduce targeted ads based on user data in early 2023, according to a new report.
Months after the digital behemoth started building a demand-side platform, or DSP, that could better focus ads toward its viewers, Digiday reported that Apple executives, led by VP of Ad Platforms Todd Teresi, are holding “exploratory discussions” with media agencies about selling ad time on Apple TV+.
Apple TV reps did not immediately respond to TheWrap for comment.
The streaming service has already hosted ads with its coverage of Major League Baseball, and other sports programming like its 10-year deal with Major League Soccer was previously seen as a natural ad opportunity. But talks are now taking place around bundling ads into its original content as well, Digiday said.
Citing unnamed agency sources, the report claimed Apple has not asked media agencies to have client dollars ready for the current quarter, which suggests the move will likely take place early next year.
“Anything that would open up premium inventory [in connected TV or streaming] would be a positive,” one executive was quoted. “The last bastion is Apple TV. Apple is going to be a very good ad experience with probably a low ad load. They’re already actually very diversified in terms of revenue streams so there’s less pressure to fit lots of ads.”
Another executive warned that Apple won’t take the step unless “there’s a significant opportunity” and if that opportunity wouldn’t “jeopardize the relationship they have with their consumers.”
Right now, Apple’s primary sources of ad revenue are search ads on the App Store and a pact with NBCUniversal that places ads on apps like Apple News. These are estimated to bring in $4 billion annually, with JPMorgan predicting that could rise to $6 billion.
To expand its ad dollars by introducing targeted ads on its streaming service, though, Apple will have to tread delicately, given its prior statements surrounding user privacy.
A previous attempt at pulling in more advertising 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 shut down in 2016 because Apple’s leaders did not recognize the differences between the media industry and tech, Digiday wrote, expecting to be able to name its own price.
Apple appears to have learned from that experience in its recent discussions, the outlet reported.
