Apple Inc. is reportedly testing a new AI-powered advertising tool for the App Store, as per a recent Business Insider report. This tool can autonomously decide the best ad placements within the App Store without introducing any new ad formats. This method is similar to Google's Performance Max and Meta's Advantage+.
The tool is currently being tested with a select group of marketers and aims to increase efficiency and ROI. It uses four existing ad formats including ads in the search tab and search results, recommendations on app download pages, and ads on the "Today" tab on the App Store's homepage.
Advertisers can set their budget, target cost-per-acquisition, target audience, and countries they wish to reach. Using these parameters, Apple's algorithm can decide the optimal ad placements across the available formats. Presently, the tool is only available for App Store placements, but experts believe Apple may extend its use to other platforms in the future.
Research firm Omdia predicts that Apple's advertising business will reach $7 billion this year, marking a strong growth from previous years. Business Insider also highlighted that despite its quiet approach to consumer-facing AI products, Apple is actively using its advertising business to test AI technologies.
Apple's increasing interest in generative AI and its strategic moves in advertising tech and TV ad sales suggest potential plans for wider advertising initiatives. This aligns with recent calls from its investors for the company to clarify its strategy in this domain.
