Apple is testing a new way to buy App Store ads using artificial intelligence using Google and Meta, according to two people familiar with the matter.
Apple has begun testing with a small group of advertisers a product that automatically decides where to advertise in the App Store, similar to Google's P-MAX and Meta's Advantage+.
Apple's current ad format consists of two types of ads: on the Search tab and on the search results page. One is a Like Ad that appears on an app's product page, and the other is an ad that appears on the Today tab when a user opens an app's product page. App Store. With this new campaign type, advertisers enter budget and cost-per-purchase goals, as well as the audiences and countries they want to reach. Apple's algorithms automatically determine where your brand's ads fit into the four available formats.
Apple has told advertisers that it is conducting tests to see how it can improve the performance of Apple's search ads, but a person familiar with the matter said the company will do so. He said he expects to officially announce the product in the next few days. The person remained anonymous because they were not authorized to speak publicly about the program.
Apple did not respond to a request for comment.
P-MAX and Advantage+ have been a boon for Google and Meta, and both companies regularly cite these products as key growth drivers in their revenue calls. Google says P-MAX delivers better results, but some advertisers are skeptical of the product because the company doesn't provide a detailed breakdown of where ads are shown. The meta report reveals the Advantage+ list.
While Apple's new tool only appears to be listed in the App Store, mobile advertising experts think it makes sense that Apple could potentially add additional features to the tool.
“By definition, PMax-style automation tools require multiple types of deployments to deliver value,” said Eric Soffert, analyst, investor, and founder of Mobile Dev Memo.
Seufert is skeptical that Apple will place mobile app install ads in the news or stock apps, but since those apps are managed through a separate ad interface, P-MAX added that the tool could be a step forward for Apple's new advertising efforts. Other assets. Commentators had previously speculated that Apple would soon introduce advertising in its Maps, Apple TV+, and Books apps. Apple also recently launched a sports app, which could also be a candidate for new ads.
Apple's advertising business is expected to generate $7 billion in revenue this year, up $1 billion from 2023, according to analysts at research firm Omdia. Most of its revenue comes from search ads in the App Store, but the company has been making progress in other areas recently.
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