Apple testing new tool for optimizing App Store ads

Apple is reportedly piloting a new smart tool that uses AI to buy ads on its App Store.

Similar to Google’s Performance Max and Meta’s Advantage+, this tool lightens the workload of advertisers by automatically identifying optimal ad placements within its 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, carefully assess whether it aligns with your campaign needs and budget first.

Accessibility. Apple’s new tool is currently undergoing testing with just a small group of advertisers for now.

Launch. Apple is expected to officially unveil the new product in the coming months, according to a source familiar with the matter. However, the tech giant is keen on continuing testing to gain a better understanding of how to improve the performance of its Apple Search Ads before the official launch.

How it works. To use this new tool, advertisers are required to input their:

• Budget.
• Cost per acquisition target.
• Desired audiences.
• Countries they wish to target

Apple’s algorithm then leverages AI to determine the most effective places to display the ads across its available formats within the App Store.

While this tool is currently focused on the App Store, experts believe Apple may expand it to other platforms in the future.

Why now? Apple’s ad revenue is forecast to hit $7 billion this year, up $1 billion from 2023, according to the research firm Omdia. And most of that revenue is generated from its App Store search ads. Considering the success of products like Performance Max and Advantage+, regularly highlighted as crucial growth drivers in Google and Meta’s earnings calls, it’s logical for Apple to be exploring a similar tool.

What Apple is saying. Apple did not immediately respond to Search Engine Land’s request for comment.

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Deep dive. Read our Performance Max guide for more information on how it works, when to use it and why you should use caution.