Apple is testing an AI-powered ad product to optimize App Store ad campaigns

In a bid to enhance its advertising offerings, Apple is reportedly venturing into the realm of AI-powered ad placement within its App Store, drawing inspiration from strategies employed by Google and Meta.

According to reports by Business Insider, the company has initiated trials of a new advertising product among a select group of advertisers. This product employs an automated system that autonomously determines the optimal placement for ads within the App Store, mirroring the functionalities of Google's Performance Max and Meta's Advantage+.

Presently, Apple's advertising repertoire encompasses two primary ad formats: ads featured within the search tab and search-results page, as well as "you might also like" ads displayed on app product pages. Additionally, ads are showcased on the "today" tab when users access the App Store. In this campaign type, advertisers input their budget, cost-per-acquisition target, target audiences, and desired countries for outreach. Subsequently, its algorithm allocates the brand's ads across the available formats based on performance indicators.

While Apple has communicated to advertisers that these tests are aimed at refining the effectiveness of its Apple Search Ads, it has been reported that an official rollout of the product may be imminent in the upcoming months. However, the company has not issued any official statement in response to queries regarding this initiative.

Apple's advertising business is expected to grow to $7 billion in 2024 from $6 billion in 2023, mostly because of ads on the App Store, but they are also doing new things like putting ads during Major League Soccer games on Apple TV and hiring more people for advertising.