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Apple is testing new AI advertising tool

Translate from : Apple tester ny AI-reklameværktøj

Apple, known for its "walled-garden" approach, is dipping its toes into the world of AI-powered advertising. According to a report from Business Insider, Apple is testing a new tool that uses artificial intelligence to optimize ad placement within the App Store, similar to similar efforts by Google and Meta.

Apple will apparently gradually expand its AI to other services such as Maps and Books

This new system, which is currently being tested with a select group of advertisers, aims to streamline the advertising process. Advertisers simply give Apple their budget, target audience details and desired countries. The AI then takes over and automatically determines the most effective placement for their ads across the App Store's existing ad slots. These include "Keywords," "Search Results," "You May Also Like" recommendations, and ads that appear on the App Store's "Today" opening page.

This change reflects Apple's willingness to learn from industry leaders like Google and Meta, who have already established successful AI-powered ad platforms (Performance Max and Advantage+ respectively). Experts believe that this is just the first step in which Apple can potentially expand its AI-driven advertising efforts to other services such as Maps, Apple TV+ or Books.

"Any automated tool like PMax [Performance Max] is going to need a series of placements to really generate value," noted Eric Seufert, an analyst and investor who specializes in mobile development. This is consistent with the speculation of Bloomberg's Mark Gurman, who previously suggested that Apple's advertising ambitions extend beyond the App Store.

Further bolstering this theory is Apple's recent hiring of Joseph Cady, a seasoned player in the advertising industry with extensive experience in data-driven and targeted advertising. Cady's background in building partnerships with big players like Amazon, Google and TikTok suggests that Apple may be preparing to enter a more competitive advertising landscape.

While Apple has yet to officially comment on the AI-powered ad placement tool, Business Insider expects a formal launch in the coming months. This move marks a potential shift in Apple's advertising strategy, one that could see them leverage AI to personalize user experiences while generating new revenue streams.