We're all waiting for Apple's big push into generative AI in iOS 18, but a new report suggests Apple may have something much less interesting in mind than chatbots and image editing: advertising.
According to a Business Insider post, Apple is “taking a cue from Google and Meta” by testing a new AI-based advertising system that “automatically determines where to place ads within the App Store.” According to the report, Apple has already notified advertisers of the pilot program, which is designed to help Apple “learn how to improve the performance of Apple Search Ads,” and is likely to introduce the new initiative in the coming months. It's high.
Apple is expected to unveil several AI initiatives at WWDC in June, but it's unlikely this program will be among them.
The program described by Business Insider is similar to Google's Performance Max and Meta's Advantage+ campaigns. On these platforms, Google and Meta simplify the ad buying process by automatically determining which campaigns best fit your needs after a simple setup process. According to Business Insider, the new process allows advertisers to input budget target metrics, audience, and the countries they want to reach. Apple's AI-powered algorithm then determines the best place to place your ad within search results, Today tab, or app listings.
The program will reportedly be limited to App Store search results, but could reportedly expand to other apps, including Maps and Sports. According to research firm Omdia, Apple's advertising business revenue is expected to increase from $6 billion in 2023 and $4 billion in 2022 to about $7 billion this year.