Good morning and welcome to this special announcement from Apple headquarters in Cupertino. We are here today to introduce a significant new initiative that reimagines the relationship between users, their time, and digital advertising. This program, called "Apple Rewards," represents a new chapter in our commitment to providing users with choice, transparency, and control over their digital experience, while also creating a new, privacy-centric value exchange. For years, the dominant model for funding "free" digital services has been advertising. This model has often come at a cost to user privacy, with personal data being collected and shared across the web to enable targeted advertising. Apple has long held the belief that privacy is a fundamental human right. With features like App Tracking Transparency (ATT) and Privacy Nutrition Labels, we have given users unprecedented control over their data. However, we also recognize that advertising is a powerful economic engine for many developers and content creators. "Apple Rewards" is our innovative solution to this complex ecosystem. It is a voluntary program, integrated directly into the Apple ecosystem, that allows users to earn financial credits by choosing to engage with curated, high-quality advertisements in a dedicated, controlled environment. This is not about inserting more ads into your existing apps. It is about creating a separate, opt-in space where your time and attention are directly and transparently compensated. Let us delve into the core mechanics of the program. "Apple Rewards" will be accessible through a dedicated application pre-installed on all new iPhones, iPads, and as a downloadable option from the App Store for existing users. Upon launching the app for the first time, users will be guided through a clear and concise onboarding process. They will be presented with our comprehensive Privacy Pledge, which is foundational to this program. The Apple Rewards Privacy Pledge is simple and absolute: 1. **No Personal Data Linking:** Your activity within the Apple Rewards app is not linked to your Apple ID, iCloud account, or any other personal identifier. Your engagement is anonymized. 2. **On-Device Processing:** All analysis of which ads are relevant to you is performed entirely on your device. Your personal data, including contacts, photos, messages, or browsing history from Safari, never leaves your device to serve you ads within this program. 3. **Transparent Data Use:** We will provide a clear, accessible dashboard showing you exactly what information was used on-device to select an ad, and you can adjust your preferences at any time. 4. **No Cross-Platform Tracking:** Advertisers will receive aggregated, anonymized campaign performance reports. They will not be able to identify you individually or track your activity across other apps and websites. Once enrolled, users will enter the "Rewards Hub." This interface is designed for clarity and user control. You will not be bombarded with ads. Instead, you will see a selection of advertisement units from various brands. These are not standard banner ads; they are premium, often interactive content such as short video stories, interactive demos, or curated brand narratives. Each ad unit clearly displays the amount of Apple Credit you will earn for its full and attentive completion. We are introducing a new, secure virtual currency for this program: Apple Credits. One Apple Credit is equivalent to one US Dollar. These credits are accrued within your dedicated Rewards Wallet, which is part of the app. Users can then redeem these credits in several ways: directly towards purchases on the App Store, iTunes, Apple Music, and Apple TV+; as a statement credit on your Apple Card; or as a direct deposit to a linked bank account. We have ensured the redemption process is seamless and provides real, flexible value. For the user, the value proposition is clear: autonomy and compensation. Your attention has value. "Apple Rewards" allows you to directly monetize that attention on your own terms. You decide when to engage, for how long, and with which brands. There is no obligation; you can use the app for five minutes a day or five minutes a month. It is a tool for earning that fits into the pockets of your time, whether you are commuting, waiting in line, or simply have a few spare moments. Now, let's address the value for advertisers. In a post-ATT digital landscape, brands are seeking effective, privacy-compliant ways to reach engaged audiences. "Apple Rewards" offers a powerful new channel. It provides a guaranteed, fully attentive audience that has voluntarily opted-in to view their message. This is the antithesis of the ad-saturated, often ignored advertising environments found elsewhere. Advertisers will have access to a sophisticated, yet privacy-preserving, platform to launch their campaigns. Using our proprietary on-device intelligence, the system can match ads to users based on broad, categorical interests inferred from their *publicly available* App Store preferences and their activity *within the Apple Rewards app itself*. For example, if a user frequently engages with ads for outdoor gear, the system may show them more content from related brands. This all happens without compromising the user's anonymity. Advertisers pay Apple on a cost-per-completed-view (CPCV) model, ensuring they only pay for verified, fully-watched engagements. This model is fundamentally different from the traditional ad-supported web. It shifts the paradigm from a covert data extraction model to an overt value-for-time exchange. The user is not the product; they are an active participant in a transparent transaction. We have also considered the potential impact on our developer community. The Apple App Store has been an incredible engine for economic growth, and we see "Apple Rewards" as a complementary force. Developers can choose to integrate a lightweight SDK that allows them to offer "Apple Credits" as a currency within their own apps and games. This provides them with a new monetization stream that does not rely on in-app advertisements or data collection, potentially allowing them to offer premium features or content without direct cost to the user. It’s a win-win, fostering a healthier ecosystem for both developers and users. Of course, with any program of this nature, we have implemented robust safeguards. To prevent fraudulent activity and ensure the integrity of the platform, we have developed advanced on-device and server-side systems to detect artificial engagement, such as automated clicking or other manipulation attempts. Furthermore, all advertising content will be subject to Apple's stringent human review process, adhering to our well-established App Store guidelines to ensure it is appropriate, accurate, and from legitimate businesses. We anticipate questions about the potential for this to be a primary income source. We want to be perfectly clear: "Apple Rewards" is designed as a program for earning supplemental income, not a replacement for employment. The credits earned are intended to offset the cost of digital subscriptions, apps, or other small purchases. It is a way to make your digital life more affordable, not a full-time job. Looking ahead, we are incredibly excited about the potential of "Apple Rewards." We believe it aligns perfectly with our core principles of empowering users and protecting their privacy. It offers a fair, transparent, and rewarding alternative to the current advertising model. We are beginning a pilot program in the United States next month, with a planned global rollout throughout the coming year. In conclusion, "Apple Rewards" is more than just an app; it is a statement of our values. It is our vision for a future where users are in control, where their time is respected and compensated, and where advertising can exist in a way that is both effective and respectful of human dignity. We are not just building technology; we are building a better, fairer digital economy. Thank you. We will now open the floor for questions.
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