Apple is Testing AI Ads to Optimize App Store for Developers

Tech giant Apple is reportedly testing a new system that uses artificial intelligence (AI) to improve the way ads are displayed in its App Store.

Photo by James Yarema on Unsplash

This news comes from multiple sources, including reports by Benjamin Mayo, Lara O'Reilly, and Isaiah Richard from their respective news agencies.

Similar to existing tools offered by Google and Meta, Apple's AI aims to automatically choose the most effective locations for ads within the App Store.

This means developers will provide their budget and target audience information, and the AI from Apple's tech will handle the rest, it will decide to show ads between “you might also like” ads and the “today” tab with 2 other options when a user opens the Apple App Store on iPhone. This way, developers will be able to place the ads where they are likely to be seen by the most relevant users.

Currently, the testing phase involves a limited group of partners.

This suggests Apple is carefully evaluating the effectiveness of the AI system before potentially opening it up to a wider range of advertisers alongside their release of iOS 18 which could be an AI powerhouse for Apple devices.

While Apple is known for prioritizing user privacy without giving a second chance, this new development indicates a growing focus on its advertising business as a whole.

It's important to note that while the initial use of AI is for App Store ads, some reports speculate that Apple might expand this technology to other parts of its ecosystem in near future.

In Short:

• Apple is currently experimenting with this AI system in collaboration with a limited group of advertisers.
• This technology resembles similar AI-based ad placement systems already used by companies like Google and Meta.
• The core function of the tool is to optimize ad placement within the App Store, potentially leading to better ad performance for app developers.

Overall, this news signifies Apple's tentative steps towards incorporating AI into its advertising strategy.

Whether this will become a major aspect of their business model or remain limited to the App Store remains to be seen.