Apple is stepping into new territory in the world of digital advertising, with recent reports indicating that the company began testing a new AI-powered tool with a select group of advertisers. According to a report from Business Insider, the technology uses algorithms to automatically determine where to place ads in the App Store, representing a significant shift in the company’s advertising strategy.
The system, which is said to mirror similar functionality to Google’s Performance Max and Meta’s Advantage+, allows advertisers to specify their budget, cost per acquisition target, desired audiences and geographic targets. Apple’s algorithm then works to determine the most effective placement of ads within existing formats in the App Store.
This initiative is part of Apple’s broader ambition to improve and expand its advertising offerings. Currently, the company offers several ad formats within the App Store, such as ads in the search tab, search results, related app suggestions and ads in the “today” tab.
What’s most intriguing about this test is the speculation about how it could influence Apple’s future ad expansions. Business Insider suggests that this could lead to an extension of advertising to other apps and services within its ecosystem, such as Apple News, Stocks and the recently launched Sports app. In addition, the report mentions the possibility that Apple is considering an ad-supported Apple TV+ tier, suggesting a significant shift in the streaming platform’s monetization strategy. While it remains to be seen how this test will evolve and what impact it will have on the digital advertising landscape, it is clear that Apple is looking for new ways to capitalize on its vast ecosystem of products and services. With artificial intelligence at the center of this new foray into advertising, the company could be on its way to offering advertisers and users a more relevant and effective advertising experience on its platforms.
