Apple Reportedly Testing AI-Powered Ad Technology

Apple has begun testing a new AI-powered tool with a small group of advertisers that automatically decides where to place ads on the App Store, Business Insider reports.

Citing two individuals familiar with the matter, Business Insider claims that the AI-powered tool mirrors the functionalities of Google's Performance Max and Meta's Advantage+, which allow advertisers to specify their budget, target cost-per-acquisition, desired audiences, and geographical targets. Apple's algorithm then automatically determines the most effective placement of ads across the ‌App Store‌'s existing formats.

The initiative is said to be part of Apple's broader ambition to refine and expand its advertising offerings. Currently, Apple provides a variety of ad formats within the ‌App Store‌, including search tab ads, search results page ads, "you might also like" suggestions on app product pages, and ads on the "today" tab.

Business Insider speculates that the move toward AI-enhanced ad placements suggests a future where Apple could extend advertising to other apps and services within its ecosystem, such as Apple News, Stocks, and the recently launched Sports app. The website also today reported that a number of recent Apple hiring decisions may indicate plans to introduce an ad-supported Apple TV+ tier.