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.