Apple is piloting a new tool for App Store ads optimization that would leverage AI to decide where is best to place ads in the App Store to maximize return on investment for advertisers, according to a new report from Business Insider.
Similar to offerings from Google and Meta, Apple’s new solution, which is in testing with a small group of advertisers, automates ad placement within the App Store. Advertisers provide campaign parameters like budget, target audience, and desired regions, and then Apple’s algorithm decides where to place the ads based on the parameters.
The algorithm decides between strategically displaying ads across the four available App Store formats: search tab placements, search results page ads, “You might also like” recommendations, and “Today” tab features.
This aligns with the growing trend in mobile advertising, where AI streamlines campaign management and optimizes ad delivery for enhanced performance. While official launch details remain under wraps, sources suggest Apple is likely to unveil the product in the coming months.
Rumors of Apple venturing into additional advertising avenues have been circulating for some time, with potential targets including Maps, Apple TV+, and the Books app. Apple recently hired Joseph Cady, a former NBCUniversal ad executive to join the Apple TV+ division, fueling speculation of an ad-supported tier of the streaming service.
Apple’s advertising revenue is on track to reach $7 billion in 2024, a significant increase from $6 billion in 2023. This growth is primarily driven by App Store search ads, but the company has been actively exploring other avenues.
Apple is expected to begin leaning heavily into AI in the coming months, with the company reportedly working to include as many AI features in iOS 18 and macOS 15 as possible. Just as early as this month, Apple started to use the term “AI” in its marketing material after previously having shied away from the term in favor of “machine learning”.
