Apple Innovates with AI Ads, Reportedly Tests Automated Placements in App Store and Beyond

Apple Inc AAPL is reportedly venturing into AI-driven advertising within its App Store, trialing an automated product similar to Alphabet Inc GOOG GOOGL Google’s Performance Max and Meta’s Advantage+. 

This innovation allows ads to be placed automatically across four existing ad formats, optimizing for the advertiser’s budget and acquisition costs while targeting specific audiences and regions. 

Currently, in testing with a select group of advertisers, this initiative aims to enhance the effectiveness of Apple Search Ads, Business Insider reports.

Also Read: Amazon’s New AI Assistant Rufus Sparks Debate – Will It Impact Advertising Revenue?

Apple’s current focus is on the App Store, but there’s speculation that this AI tool could extend to other Apple services.

Recent reports indicated Apple dumping its EV development project Titan to emphasize its AI endeavors.

Experts predicted $33 billion in AI opportunities for Apple annually.

Experts predict this automated tool could precede new advertising opportunities within Apple’s ecosystem, potentially including Maps, Apple TV+, and other apps. Apple’s advertising venture, predominantly based on App Store search ads, is reportedly projected to yield $7 billion in revenue this year, with recent expansions into MLS game sponsorships on Apple TV and strategic hires in adtech and TV-ad sales hinting at broader advertising plans, possibly including an ad-supported tier for Apple TV+.

Investors can gain exposure to Apple via Vanguard Information Tech ETF VGT and SPDR Select Sector Fund – Technology XLK.

Price Action: AAPL shares traded lower by 0.09% at $172.60 on the last check Tuesday.

Also Read: Google Announces Major Job Cuts in Ad Sales, Shifts Focus to AI and Automation

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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