Apple Ads - The Quiet Rise of a New Advertising Giant
For the first time in years, Google’s dominance in mobile search shows cracks. Recent data suggests that the share of Google searches on iOS devices is declining. In May 2025, reports of declining Google searches on iOS devices sent shockwaves through the market wiping more than $150 billion off Google’s market capitalization.
Why does this matter? Because Google reportedly pays Apple around $20 billion annually to remain the default search engine on iPhones. If this foundation begins to erode, Apple has every reason (and opportunity) to take advertising more seriously.
Signals of a Bigger Apple Advertising Push
Apple has historically treated advertising as a side business. But in the past two years, a number of developments point to a bigger shift:
Rebranding: Apple Search Ads quietly became Apple Ads.
Key hires: Senior executives from ad tech and media sales joined Apple’s ranks.
New inventory: Apple TV+ shows the first signs of commercialization, experimenting with ad formats.
App Store strength: With app install and engagement campaigns, Apple already controls one of the most effective ad networks in the world.
Each of these steps may seem small in isolation, but together they outline a larger play: Apple building its own advertising ecosystem.
The Role of Apple Intelligence
The launch of Apple Intelligence changes the dynamics again. AI reshapes how people discover content and services and Apple has the unique position of controlling both hardware and operating system.
Imagine this scenario: instead of searching via Google, an iPhone user asks Siri (powered by Apple Intelligence) for a restaurant, product, or service recommendation. That request bypasses traditional search – and places Apple directly in the advertising value chain.
Unlike Google, Apple has the advantage of starting fresh: no legacy ad stack, no dependence on third-party cookies, and full control of its ecosystem.
Why Apple’s Entry Could Be Different
If Apple doubles down on advertising, it has the chance to build something the industry has long been waiting for:
User-first experiences: Ads designed as part of the Apple product philosophy seamless, privacy-conscious, and non-intrusive.
No legacy baggage: Free from outdated structures and debt-heavy platforms.
Ecosystem leverage: From iPhones to Macs, iPads to Apple TV+, the scale and cross-device integration is unmatched.
In short: Apple could rethink advertising not as a bolt-on revenue stream, but as a native extension of its ecosystem.
The Billion-Dollar Question - A New Walled Garden?
If Apple continues on this path, it could create the next walled garden not just within the app economy, but extending into media and commerce.
The question is: will this be a walled garden that advertisers actually want?
For brands: Apple offers premium inventory, trusted environments, and closed-loop measurement.
For users: Ads could feel more relevant and less intrusive.
For Apple: A multi-billion-dollar business opportunity, complementing hardware and services.
Implications for AdTech, Commerce Media, and CTV
AdTech platforms should expect tougher competition as Apple absorbs more value into its ecosystem.
Retail and commerce media players must prepare for Apple entering the attribution and shopping journey.
CTV could see Apple TV+ evolve into a more fully monetized environment bringing shoppable formats into premium streaming.
This is not just another advertising expansion. It is the potential start of a new paradigm - advertising redesigned by Apple.
Key Takeaway
Apple has a once-in-a-generation opportunity: to build the future of advertising from a position of strength. Quietly, deliberately, and very cleverly.
The industry must now ask itself:
Is Apple about to become the next walled garden and if so, is it one we might actually welcome?
