Apple Tests AI-Powered Tool To Optimize App Store Ads

Apple is testing a new campaign type where advertisers enter their budget and cost-per-acquisition target and the desired audiences and countries they want to reach.

The algorithm, built on artificial intelligence (AI), then determines the best placements for the brand's ads across its four available formats through automation.

The advertising formats include two types of ads in the search tab and on the search-results page, according to Business Insider, citing people who are familiar with the effort.

The advertising formats being automated through AI include "You might also like" ads that appear on app product pages and those that appear on the "Today" tab when users first open the App Store.

The formats that automatically decide where to place the ads in the App Store are being tested with a small group of advertisers.



The report suggests that the technology is similar to Google's Performance Max and Meta's Advantage+, but does not mention Microsoft’s Performance Max. It also only mentions one area to place the ads, rather a variety of locations to choose from. The platforms — Google, and Microsoft — give brands multiple media options.

Apple has told advertisers, according to the the report, that the tests are being conducted in an effort to learn how to improve the performance of its Apple Search Ads, but one of the sources familiar with the matter said they expect the company to officially introduce the new product in the coming months.

Similar to Google, Apple also could build out automation supported by AI as an advertising-supported plan for Apple TV+.

Reports also have surfaced that the company plans to incorporate ads into its streaming platform. A series of recent hires could build out the platform.

Joseph Cady -- who previously worked as NBCUniversal's executive vice president of advanced advertising and partnerships -- has joined Apple, according to Business Insider, and the company also hired a few other people who have worked with video advertising at NBCU, Peacock, and FanDuel.

Cady will work closely with Winston Crawford, who stepped into the role of Apple's head of global ad sales in September. Crawford will run the team that supports the Apple TV+ streamer and other Apple products.

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