Apple Tests AI-Powered Ad Product, Eyes $7B Ad Revenue

Apple is taking a cue from Google and Meta by experimenting with a new AI-powered way to buy its App Store ads, according to two people familiar with the matter.

Apple's current ad formats consist of two types of ads within the search tab and on the search-results page, "you might also like" ads that appear on app product pages, and those that appear on the "today" tab when users open the App Store. In this new campaign type, advertisers enter their budget and cost-per-acquisition target, as well as the audiences and countries they want to reach. Apple's algorithm then automatically decides where best to place the brand's ads across the four available formats.

Apple has told advertisers it's conducting the tests in an effort to learn how it can improve the performance of its Apple Search Ads, but one of the people familiar with the matter said they expected the company to officially introduce the product in the coming months. This person was granted anonymity because they were not authorized to speak publicly about the program.

Seufert added that while he was skeptical Apple would place mobile app-install ads in its News and Stock apps — because they're managed using a different ads interface — a Performance Max-type tool could be a precursor to Apple launching new ad placements in its other assets. Commentators have previously speculated that Apple would soon bring ads to Maps, Apple TV+, and its Books app. Apple also recently launched a Sports app, which could be another contender for new ad spots.