Apple's strategy - Harnessing Artificial Intelligence for enhanced optimization of App Store advertisements

Apple is set to leverage artificial intelligence for the acquisition and placement of ads within its App Store, drawing inspiration from platforms like Google's Performance Max and Meta's Advantage+. Initial tests involving a select group of advertisers have been initiated, with the platform autonomously determining optimal ad placement within the App Store. Advertisers have been informed that Apple is experimenting to enhance the performance of its Apple Search Ads, and there are expectations of the product's official launch in the coming months. The new campaign type allows advertisers to input their budget and target audience, with the algorithm making decisions on the most effective ad placements across available formats, such as the App Store Today page and the "You Might Also Like" section on an app's product page.

Apple's advertising venture is an emerging revenue stream for the company, and analysts project potential growth to reach $6 billion by 2025, with a significant portion, around $4.1 billion, attributed to Search Ads. Despite its promising prospects, Apple's advertising efforts have faced criticism. In October 2022, controversy arose as gambling ads appeared ubiquitously in search results, irrespective of user queries. These ads were spotted alongside children's apps and even apps focused on gambling addiction recovery, raising concerns and sparking discussions about the appropriateness of the ad placements.