Apple has reportedly entered into an arrangement with Amazon to remove advertisements from competitors on pages dedicated to Apple devices such as iPhones, iPads, and MacBooks. This agreement aims to present cleaner search results and product pages for Apple products compared to those of rival brands.
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MILAN, ITALY - SEPTEMBER 22: The Apple logo outside the Apple Store Milan on September 22, 2023 in Milan, Italy.
Striking Exclusive Ad Deal
In a recent legal battle with Amazon, the Federal Trade Commission (FTC) leveled accusations against the e-commerce giant and its former CEO, Jeff Bezos, for flooding the platform with what it termed "junk ads" to enhance profits. Notably, The Verge reported that the product pages on Amazon stand out as an exception, maintaining a relatively ad-free environment.
Although competing products are still listed in search results on Amazon, the placement of ads above, below, and between results is restricted. For instance, a search for an iPhone 15 on Amazon will display only an Apple product banner at the top and another at the bottom, while searches for rival devices may feature ads for various products and services throughout the results page.
The absence of ads on these pages can be traced back to a 2018 agreement between Apple and Amazon. Jeff Wilke, Amazon's former retail chief, noted in a previously disclosed email that Apple expressed a desire not to boost sales for competing brands in search or detail pages and wanted to avoid any product placement suggesting non-Apple products on its product detail pages.
Apple's Defense
Apple's spokesperson Fred Sainz confirmed the existence of this agreement to The Verge, explaining that it restricts advertising in spaces specifically associated with Apple-related queries. However, the specifics of whether Apple compensates Amazon for the ad space it occupies remain unclear.
Wilke's email to Amazon indicated that Apple would need to purchase these placements or compensate Amazon for the lost ad revenue. According to Apple, the agreement was forged to tackle rampant counterfeit and safety concerns present on Amazon's platform.
By ensuring accurate content on Apple product pages, the tech giant asserts that the initiative has successfully curbed the sale of counterfeit and unsafe Apple products on Amazon. The available information suggests that Apple gained the privilege to acquire slots typically reserved for advertisements.
Business Insider reported that this arrangement contributed to more streamlined page layouts for Apple products, featuring fewer or no ads until the bottom of the page, distinguishing it from other brands.
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The uncluttered and ad-free layout of Apple product pages on Amazon has become a focal point, eliciting both attention and critique from competitors, including Samsung.
Apple Insider reported that this streamlined presentation extends to search results for Apple products like iPhones and iPads, creating a notably cleaner user experience compared to rivals like Samsung and Sony, where multiple sponsored ads are prevalent.
A member of Amazon's advertising team also mentioned that the company had experimented with comparable search offerings in recent years, although it seems that the testing phase is no longer active.
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