Apple Inc. (NASDAQ:AAPL) may be the best positioned company for the ripe local advertising industries according to a new report. The Cupertino-based company will soon roll out the iBeacon, first in its own stores and then to other outlets. The device my give retailers and service businesses a new tool in advertising, and it may be great for business at Apple.
According to Steven Milunovich, the lead author on a UBS report about iBeacons, Apple Inc. (NASDAQ:AAPL) has key advantages over some of the other companies trying to dominate the early local ad industry. The company’s future is ever-changing, but advertising might be a desirable business to be in.
Apple local ads
Apple Inc. (NASDAQ:AAPL) is looking to get in the way of Google Inc (NASDAQ:GOOG) local advertisements with its roll-out of local ads. Google is working on the inclusion of GPS data in its own advertisements in order to monetize point of purchase advertising. Apple has now begun its roll-out of local advertising, though it plans to take a different approach.
Google Inc (NASDAQ:GOOG) advertises based on GPS data on web services. The Apple Inc. (NASDAQ:AAPL) plan would use Low Energy Bluetooth and iCloud in order to deliver ads when customers pass near a shop even inside a shop. Both companies are hoping to Micro-Map internal locations in order to drive the usability of the local ads.
Apple and innovation
“We continue to think new product categories, such as iBeacons, are needed to reignite investor enthusiasm and enhance the multiple,” according to the analysts. New product categories at Apple have been a sore spot for analysts. If the company intends to move toward local advertising in a substantial way, it may signal a completely new direction for the company.
Apple Inc. (NASDAQ:AAPL) makes most of its money off of hardware sales. The company leverages its software developers to drive sales of hardware, but margins are being squeezed and it seems the company’s current hardware offerings are destined for a slowdown.
Services, particularly those aimed at commerce and enterprise, may be good for Apple Inc. (NASDAQ:AAPL) business. The company may need to diversify, and local ads may be one of the several ways forward. If the company is going in this direction, the firm’s future may be very different to the one many expect from Cupertino.
