The Big Story: Zoom Ads And Apple’s App Ad Budget

The Big Story podcast

Netflix has finally put to rest rumors (hopes and dreams) that it would one day monetize with advertising – but now Zoom is stepping up to the plate.

The Zoom CEO rejected the idea of monetizing its free video conferencing during the beginning of the pandemic. But the company is now changing course with plans to show ads to free users at the end of a video conference. But could Zoom’s minimal ad approach be the first step on a slippery slope toward more intrusive, invasive ads?

Elsewhere in ad land, a company buying ads on your behalf to promote your product sounds like free money.

But in the case of Apple, the truth is more complicated. Apple buys Google search ads for apps with high-value subscriptions (think HBO Max, Tinder and MasterClass) so it can take its 30% cut. That’s the allegation, at least, in a recent Forbes report. At a time when Apple is under scrutiny for its high tax on App Store purchases, this practice (though covered in Apple’s terms and conditions) feels suspect.

Then, Unified ID 2.0 is supposed to be the privacy-safe approach to replace third-party cookies – but in Europe, testing hasn’t started yet.

GDPR is proving to be a hurdle. Specifically, getting someone (anyone) to sign up to be the UID2 administrator and take on liability under the law.

If companies can’t get past these regulatory hurdles, the idea of global marketing could be in jeopardy. A balkanized approach to media and marketing may emerge if there is no universal, cross-border identity.

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