Apple is testing a new smart tool that uses AI to buy ads in its App Store.
Similar to Google’s Performance Max and Meta’s Advantage+, this tool eases advertisers’ workload by automatically identifying optimal ad placements in their App Store, according to Business Insider.
Why we care While PMax and Advantage+ have been praised for efficiency, some advertisers worry about the associated costs and lack of control. So, before integrating Apple’s new tool into your strategy, first carefully evaluate whether it aligns with your campaign needs and budget.
accessibility For now, Apple’s new tool is being tested with only a small group of advertisers.
launch Apple is expected to officially introduce the new product in the coming months, according to a source familiar with the matter. However, the tech giant is keen to continue testing to better understand how to improve the performance of its Apple search ads before the official launch.
How it works. To use this new tool, advertisers must enter their:
budget Cost per acquisition objective. Desired audiences Countries they want to go to
Apple’s algorithm uses AI to determine the most effective places to show ads in their available formats in the App Store.
Although this tool is currently focused on the App Store, experts believe that Apple may expand it to other platforms in the future.
why now Apple’s ad revenue is expected to reach $7 billion this year, up $1 billion from 2023, according to research firm Omdia. And most of that revenue is generated from search ads in the App Store. Given the success of products like Performance Max and Advantage+, regularly highlighted as crucial growth drivers on Google and Meta earnings calls, it makes sense that Apple would be exploring a similar tool.
What Apple says. Apple did not immediately respond to Search Engine Land’s request for comment.
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deep dive Read our Performance Max guide to learn more about how it works, when to use it and why you should be careful.
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