Apple is following in the footsteps of Meta and Google by trialling a new AI-powered way to buy App Store ads.
The company began testing a product with a small group of advertisers that automatically decides where to place ads within the App Store, in a way similar to Google’s Performance Max and Meta’s Advantage+.
Apple’s current ad formats consist of two types of ads within the search tab and on the search results page: “You Might Also Like” ads that appear across the app’s product pages, and ads that appear in the “Today” tab when users open the App Store.
In the new type of campaign, advertisers enter a budget and target CPA, as well as the audience segments and countries they want to reach.
Apple’s algorithm then automatically determines where best to place brand ads across available formats.
Apple told advertisers it is conducting tests to try to see how it can improve the performance of Search Tab ads. The company is expected to officially introduce the product in the coming months.
The presence of Apple’s new tool is limited to placements within the App Store, although the company may later expand it to include other placements, as such tools need many different placements to provide the required value.
It is currently unlikely that Apple will place ads in its applications, such as News and Stock, given that they are managed through a different advertising interface, although the new tool may serve as a prelude to Apple launching new ad placements in its other applications.
Previous rumors indicated that the company may soon bring ads to the Maps, Apple TV+, and Books apps.
The company previously launched Sports, an app that could be another contender for new ad placements.
Apple’s advertising business is on track to generate $7 billion in revenue this year, an increase of $1 billion from 2023.
Most of this revenue comes from search advertising within the App Store, although it has previously made inroads into other areas.
Apple is now offering sponsorships and other advertising benefits as part of its broadcast of NFL games on Apple TV.
It has also hired staff in areas including ad technology and TV ad sales, suggesting it may have big advertising ambitions by adding an advertising layer to Apple TV+.
2024-03-12 13:38:30
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