Analyst: Apple’s App Store ads could be a $2 billion business by 2020

“Apple’s Search Ad business could generate over $500 million in revenue this year and quadruple that to $2 billion by 2020, Bernstein analyst Toni Sacconaghi claims,” Lauren Feiner reports for CNBC.
“Apple’s Search Ads appear at the top of App Store pages, marked by a blue tint and ‘Ad’ marker,” Feiner reports. “App makers can buy specific keywords they want their app ads to appear next to, similar to the way Google search ads work on the web.”
“Sacconaghi said his estimate that Apple could approach $2 billion in Search Ad revenue by 2020 was ‘conservative’ in note published Monday,” Feiner reports. “The development means that Apple is likely to meet or exceed its goal of doubling its Services revenue by the end of 2020 to $49 billion.”
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MacDailyNews Note: $49 billion annual revenue this year would place Apple’s Services business 61st on the Fortune 500, right behind AIG and Lockheed Martin.