Apple plans to leverage artificial intelligence (AI) for purchasing and placing advertisements in the App Store. This initiative follows the approach of Google's Performance Max and Meta's Advantage+ platforms.
Introduction of AI-Driven Advertisements
Apple has announced that it will begin testing AI-driven ad placements with a small group of advertisers. The goal is to automatically determine the best placement for ads within the App Store. This process is intended to enhance the performance of Apple Search Ads, with the expectation that the product will be launched in the coming months.
The impact on advertisers and users
Advertisers will have the opportunity to input their budget and target audience in a new campaign type. The algorithm will then determine the most suitable placement of the ads. This represents a significant improvement in how ads are displayed, increasing both relevance for users and effectiveness for advertisers.
The potential growth of Apple's advertising business
Although Apple's advertising business is still in its early stages, some analysts predict it could grow into a revenue source of $6 billion by 2025, with $4.1 billion coming from Search Ads. However, this growth does not come without challenges. In 2022, controversy arose when gambling ads frequently appeared alongside searches, even next to children's apps and apps aimed at recovering from gambling addiction.
The integration of artificial intelligence into the App Store's ad placement system is a significant step for Apple. It presents an opportunity to make ads more efficient and relevant for both users and advertisers. This requires advertisers to rethink and adapt their strategies to the new AI-driven environment. With potential growth on the horizon, it is essential for stakeholders to closely monitor this development.
It appears that there is no text provided for translation. Please provide the text you would like me to translate from Dutch to English.