Apple Ventures into AI-Powered Ads for App Store

Apple is said to have embarked on trials for a cutting-edge AI-driven advertising product, aiming to enhance its already thriving $7 billion ad business, Business Insider is reporting.

App Store 3

According to insiders familiar with the matter, Apple is experimenting with an innovative AI-powered approach to purchasing its App Store ads, similar to Google’s Performance Max and Meta’s Advantage+.

This new product, currently under testing with select advertisers, autonomously determines the optimal placement of ads within the App Store.

Apple’s existing ad formats encompass various placements within the App Store, including search tab ads, search results page ads, “you might also like” ads on app product pages, and those featured on the “today” tab.

With the new campaign type, advertisers input their budget, cost-per-acquisition target, audience preferences, and desired countries. Apple’s algorithm then strategically places the ads across the available formats.

While Apple has communicated that these tests aim to refine the performance of its Apple Search Ads, industry insiders anticipate an official rollout in the coming months. Notably, Apple has not yet provided any official comment on the matter.

Meta google ads

Performance Max and Advantage+ have proven highly lucrative for Google and Meta, driving significant growth for both companies. Although Google touts the effectiveness of Performance Max, some advertisers express skepticism due to the lack of detailed ad placement breakdowns.

While Apple’s initial focus appears to be on App Store placements, experts speculate potential expansion into other properties in the future.

Analysts suggest that a Performance Max-style tool could pave the way for ad placements in additional Apple assets, such as Maps, Apple TV+, and its Books app.

Apple’s advertising business is forecasted to surpass $7 billion in revenue this year, with a notable portion originating from App Store search ads. Recent developments, including ad integrations within Major League Soccer broadcasts on Apple TV and strategic hires in adtech and TV-ad sales, hint at broader advertising ambitions.

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