Apple has initiated the testing phase of a new AI-driven advertising tool, signaling its ambitions to redefine how ads are deployed within its ecosystem. This move puts Apple in direct competition with big names like Google and Meta, who have similar tools. The idea is to make ad placement in the App Store smarter and more automatic, much like how Google’s Performance Max and Meta’s Advantage+ work.
How Will Ad Placement Change in the App Store?
At the moment, Apple lets advertisers put ads in a few different spots within the App Store. With this new AI tool, advertisers can tell Apple their budget (how much they want to spend), cost-per-acquisition target (what kind of customers they’re trying to reach), and the audiences and countries they want to reach (where in the world they want their ads to show up). Then, Apple’s AI takes over and figures out the best spots to show these ads across the App Store’s existing ad formats.
Currently, Apple’s advertising arsenal encompasses two primary ad formats:
- Ads that appear within the search tab and on the search-results page, as well as
- “you might also like” recommendations on app product pages, and promotional content featured on the “today” tab.
The introduction of this AI tool is an exploration aimed at bolstering the performance of Apple Search Ads, offering a streamlined approach to ad placement that promises efficiency and targeted reach.
When Can We Expect Apple’s AI Ad Tool to Launch?
Although the tech giant has remained tight-lipped about the program, insiders close to the project suggest that an official launch could be anticipated in the months ahead. This development is grounded in Apple’s objective to refine its advertising solutions and to adapt to the evolving demands of digital marketing.
Google’s Performance Max and Meta’s Advantage+ products have seen a lot of success with their automated ad tools, mentioning them as key parts of their growth during earning calls. Google’s platform, in particular, has been praised for its effectiveness, though some advertisers wish it to be more transparent by giving more details about where ads end up showing. Meta’s Advantage+, on the other hand, does offer detailed placement reports on where ads are placed, a practice that has garnered approval from advertisers seeking clarity and accountability.
Expanding Beyond the App Store
There’s a lot of speculation about where Apple’s advertising efforts are heading. Experts believe that Apple plans to extend its advertising reach beyond just the App Store. Since AI-driven tools are built to work across various platforms, it makes sense that Apple might start showing ads in more of its services. Eric Seufert, an experienced analyst and the founder of Mobile Dev Memo, suggests that while we might not see ads in Apple’s News and Stock apps right away, Apple is likely preparing to introduce advertising more broadly across its range of services.
Apart from its App Store search ads, Apple is slowly making more money from other types of ads too. It’s started offering sponsorships and ads during its broadcasts of Major League Soccer games on Apple TV. Plus, Apple has been hiring more people for its ad business, hinting at a more comprehensive advertising strategy, possibly even introducing an advertising tier to Apple TV+, like the model recently adopted by Netflix.
Apple’s ad business is expected to make $7 billion this year—a notable increase from the previous year—This new AI-powered ad tool could help Apple not just make more money from ads but also become a major player in the digital advertising space, taking on giants like Google and Meta.
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Featured Image courtesy of Brett Jordan