Apple Is Using AI to Test Ad Placements in the App Store

Apple Is Using AI to Test Ad Placements in the App Store

News by Roberto Orosa
Published: March 12, 2024

Two people familiar with the matter disclosed that Apple is venturing into AI-driven ad placements within its App Store, using strategies similar to other tech giants like Google and Meta. 

According to a report by Business Insider, the iPhone maker has begun its trials for a new advertising tool that autonomously selects optimal placements for ads within the App Store, akin to Google's Performance Max and Meta's Advantage+.

In this trial phase, a select group of advertisers inputs their budget, desired cost-per-acquisition, audience demographics and targeted countries.

Apple's algorithm then places ads across various formats within the App Store, optimizing visibility and engagement.

When Is the New Ad Tool Coming? 

While Apple has not officially announced the product, insiders anticipate it will be open to advertisers in the coming months.

Additionally, an anonymous source stated the company aims to enhance the performance of its Apple Search Ads through these experiments.

The new ad placement system represents a significant development for Apple's advertising ecosystem.

Currently, Apple offers various ad formats within the App Store, including ads in the search tab, on search results pages, on app product pages, and within the "today" tab.

Beyond the App Store

Experts speculate that Apple's foray into AI-driven ad placements could extend beyond the App Store.

Eric Seufert, an analyst and founder of Mobile Dev Memo, weighed in on the potential expansion of ad placements.

"Any PMax-style automated tool, by definition, needs many different placement types [to] deliver value," he said.

Ad integrations within Apple's News, Stock, Maps, Apple TV+ and Books apps are said to be likely possibilities, with the tech giant's recent launch of its Sports app further fueling speculations.

Apple's advertising business is on an upward trajectory, projected to generate $7 billion in revenue this year — $1 billion more than its earnings in 2023, according to analysts at Omdia.

The company's expansion into sponsorships and ad integrations within its Major League Soccer broadcasts on Apple TV also hints at broader advertising ambitions.

Last month, Apple said goodbye to its EV project.
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Editing by Katherine 'Makkie' Maclang

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