Apple, known for its walled-garden approach, is dipping its toes into the world of AI-powered advertising. According to a report from Business Insider, Apple is testing a new tool that leverages artificial intelligence to optimize ad placement within the App Store, similar to offerings from Google and Meta.
Apple will seemingly slowly expand its AI to other services like Maps and Books
This new system, currently being piloted with a select group of advertisers, aims to streamline the advertising process. Advertisers simply provide Apple with their budget, target audience details, and desired countries. The AI then takes the reins, automatically determining the most effective placement for their ads across the App Store’s existing ad slots. These include “Search Tags,” “Search Results,” “You Might Also Like” recommendations, and ads displayed on the App Store’s opening “Today” page.
This shift reflects Apple’s willingness to learn from industry leaders like Google and Meta, who have already established successful AI-powered ad platforms (Performance Max and Advantage+ respectively). Experts believe this is just the first step, with Apple potentially expanding its AI-driven advertising efforts to other services like Maps, Apple TV+, Books, and even their newly launched sports app.
“Any automated tool like PMax [Performance Max] will need a variety of placements to really generate value,” noted Eric Seufert, an analyst and investor specializing in mobile development. This aligns with the speculation from Bloomberg’s Mark Gurman, who previously suggested Apple’s advertising ambitions extend beyond the App Store.
Further bolstering this theory is Apple’s recent hiring of Joseph Cady, a veteran advertising executive with extensive experience in data-driven and targeted advertising. Cady’s background in building partnerships with major players like Amazon, Google, and TikTok suggests Apple might be preparing to enter a more competitive advertising landscape.
While Apple has yet to officially comment on the AI-powered ad placement tool, Business Insider anticipates a formal launch in the coming months. This move signifies a potential shift in Apple’s advertising strategy, one that could see them leverage AI to personalize user experiences while simultaneously generating new revenue streams.
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