Evercore: 'Ethical advertising' could be a $20 billion industry for Apple

Apple's aggressive privacy campaign may be starting to resonate on Madison Ave.

From a note to clients by analyst Amit Daryanani that landed on my desktop Thursday:

ALL YOU NEED TO KNOW: We had the opportunity to host a call with Michael Kenny, founder of Big Three Wheels marketing agency, to discuss Apple’s recent actions in the advertising market. Mr. Kenny advises a wide range of businesses on advertising and brand strategies and he noted his small/medium clients are still heavily skewed towards FB/GOOG spending.

Apple’s recent ATT actions have significantly altered the landscape and he thinks this has helped Apple gain some share in digital advertising market. Apple has taken an aggressive stance with regards to privacy and he thinks this has begun to resonate with some of his clients.

Potentially, we could be seeing the start of a growing movement where privacy and ethical use of data becomes more important to advertisers. This would naturally benefit Apple especially when coupled with ATT which has significantly reduced the advantage held by larger competitors.

Apple will have to be careful with how they introduce more ads into the ecosystem because they will not want to risk their strong brand and commitment to design excellence rather than optimizing all space for advertising...

Net/net: We continue to see advertising as a natural market for Apple to enter which can provide an offset to any future regulatory action that may impact its services business.

Maintains Outperform rating and $180 target.

My take: If Apple's going to make ethical advertising work it will have to use a light touch -- and do it with some class.


  1. Fred Stein said:
    I like the way Amit thinks. If anything, the potential is bigger.

    For example, look at how Apple transformed in-store retail form selling to serving. Pardon the pun, but Apple, uniquely, can make ad-serving, truly a service to us, consumers.

    But please don’t put Eddie Cue in charge.

    October 14, 2021
  2. Alessandro Luethi said:
    When I was (much) younger, ads were a useful and welcome part of our lives. If I bought a local newspaper I welcomed to see ads from local businesses to better know what’s going on in town. When I bought say a Hi-Fi magazine it was useful to see ads about products and services. And the only person who knew about my interest where my friends and the person who sold me the magazine.

    October 15, 2021
  3. Gregg Thurman said:
    I’m still waiting for Apple to directly confront Facebook with its own social platform. Let FB have, and exploit, the Android market.

    Now wouldn’t that be something?

    October 15, 2021
    • Kirk DeBernardi said:
      @ Gregg Thurman —

      Hopefully that’s a perilous fleeting thought of yours Gregg. Gathering people just to advertise to them a la Facebook?

      There is no value-add to having a social platform for Apple whatsoever. Completely unnecessary to bark up that tree.

      October 15, 2021
  4. Peter Kropf said:
    Hi Gregg,

    I second what you said. They have over a billion Apple device owners. It might be a business!

    October 15, 2021
  5. Greg Lippert said:
    Hasn’t Apple been down that road (ping)?

    October 15, 2021

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