Apple Reportedly Testing AI-based Ad Placement

(RTTNews) - Apple Inc. (AAPL) is presently experimenting with a new AI-based ad purchasing tool for the App Store that can independently determine the best ad placements, according to a recent report by Business Insider.

This tool, which is currently being tested with a select group of advertisers, can automatically decide where to place ads within the App Store without introducing new ad formats, much like Google's Performance Max and Meta's Advantage+.

It aims to enhance efficiency and ROI by offering four existing ad formats, including placements in the search tab and search results, "You might also like" ads on app download pages, and those that appear on the "Today" tab featured on the app store's homepage.

Advertisers can input their budget, cost-per-acquisition target, target audiences, and countries they aim to reach, allowing Apple's algorithm to decide the best ad placements across the available formats. While the tool is presently focused on App Store placements, experts speculate that Apple may expand it to other platforms in the future.

According to research firm Omdia, Apple's ad business is predicted to reach $7 billion this year, indicating significant growth from previous years. The Business Insider report reveals that Apple is using its ad business as a testing ground for AI technology, despite being relatively silent about consumer-facing AI products.

Apple's growing focus on generative AI technology, as well as its strategic moves in ad tech and TV ad sales, indicates potential plans for broader advertising initiatives. This development aligns with the company's recent investor pressure to outline its strategy in this area.