How Apple Could Prepare To Ditch Google Search

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How Apple Could Prepare To Ditch Google Search

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Successful ad targeting requires a multichannel approach across that can personalize the reach consumers all sizes of computers, from mobile to desktop to the devices that stream live or on-demand content in our living rooms or bedrooms.  

For Apple, a low-cost TV streaming stick that makes it easy to bring content, apps, and smart-home features with a simple path to install or build upgrades for more households is the missing piece. The device is something Mark Gurman, chief correspondent at Bloomberg, wrote about in his Sunday piece.

Apple CEO Tim Cook has spent years in discussions with incoming U.S. President Donald Trump, which I find interesting. He developed a personal relationship through phone calls, dinners and meetings during the first Trump administration, people familiar with the interactions told The Wall Street Journal.

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Each meeting consisted of one challenge in search of a resolution. It seems that methodical process Cook is known for would benefit Apple’s challenge with search-giant Google in terms of paying the company millions to use its engine if he took that same approach.

Apple creates some of the most elaborate and entertaining content for the Apple TV app, but AI Intelligence, Apple’s artificial intelligence engine and agents, would give it the opportunity to leave behind its multibillion-dollar partnership with Google Search and increase the success of first-party data targeting across its devices.

Apple paid Google’s parent company Alphabet about 18 billion in 2023. Google pays Apple to maintain its status as the default search engine on Apple devices, but if the U.S. Department of Justice has its way, the industry may see an end to that payment very soon.

“Instead of a full set, the tech giant should create the building blocks for an Apple living room setup,” Gurman wrote. “That starts with making an HDMI streaming stick that can rival the Google Chromecast and Amazon Fire TV Stick.”

He wrote that the devices sell for under $50 and are capable enough to run full operating systems.

“If Apple offered a cheap and quick way to access tvOS, the App Store and services on any TV, it could quickly create a foothold and increase its services revenue,” he wrote, and I agree, but Apple would also gain the ability to more accurately personalize and target ads.

AI Intelligence would not only allow Apple to find its own way to support a stronger search engine, improve on its voice assistant Siri, but also create closer ties with television and ad targeting.

The advertising industry has high hopes for streaming and connected TV (CTV) in 2025. Ron Gutman, CEO of Wurl, expected to see more digital technologies employed on CTV in 2025 that will drive viewers to watch and interact with content and ads in new ways.

“For streamers and publishers, AI will bring more personalized recommendations and interactive content experiences to CTV like we’ve seen drive success on other platforms such as web and mobile,” Gutman said. “For CTV advertisers, deep contextual data will provide greater insight into viewer emotions and how people react to content, allowing for more precise ad placement and messaging.”

And if Apple wants to expand further into Europe, free ad-supported streaming TV (FAST) will continue to find its way across Europe with markets in the U.K., Germany, Spain, Italy and France leading the way.

“During the past year, we saw major platforms and broadcasters launch new FAST initiatives, from Titan OS and Virgin Media TV to BBC, ITV, Channel 4 and Channel 5 with the launch of Freely,” said Keith Bedford, GM of EMEA at Wurl. “As we head into the new year, content will be key. We’ll hopefully see more high-profile and quality content being brought to FAST that will help drive Europe’s FAST market growth.”

Content like sports will serve as a huge opportunity for the growth of ad-supported streaming in 2025. As studios and sports broadcasters struggle to tie in major upfront deals and connect with younger audiences, new models for revenue and content discovery will be required, he said.

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November 25, 2024 at 12:54PM