According to Business Insider, Apple is testing a new tool that uses artificial intelligence to optimize the placement of ads in the App Store, similar to the offers from Google and Meta.
This new system, which is currently being piloted with a select group of advertisers, aims to streamline the advertising process. Advertisers simply provide Apple with their budget, target audience information, and preferred countries. After that, artificial intelligence takes the reins, automatically determining the most effective placement of their ads in the existing App Store ad slots. These include Search Tags, Search Results, “You Might Also Like” recommendations, and ads displayed on the front page of the App Store’s Today page.
This shift reflects Apple’s desire to learn from industry leaders such as Google and Meta, which have already created successful AI-powered advertising platforms (Performance Max and Advantage+, respectively). Experts believe that this is only the first step, as Apple may expand its AI-powered advertising efforts to other services such as Maps, Apple TV+, Books, and even its recently launched sports app.
“Any automated tool like PMax [Performance Max] will need a variety of placements to really be useful,” said Eric Zofert, an analyst and investor specializing in mobile development. This coincides with speculation from Bloomberg’s Mark Gurman, who previously suggested that Apple’s advertising ambitions extend beyond the App Store.
Another confirmation of this theory is the recent hiring of Joseph Cady, a veteran advertising executive with extensive experience in data-driven targeted advertising. Cady’s experience in creating partnerships with major players such as Amazon, Google, and TikTok suggests that Apple may be preparing to enter a more competitive advertising landscape.
Although Apple has not yet commented on the AI-based ad serving tool, Business Insider expects an official launch to take place in the coming months. The move signifies a potential shift in Apple’s advertising strategy that could lead to the use of AI to personalize user experience while generating new revenue streams.
