Apple is currently experimenting with an AI-driven advertising tool

Apple is experimenting with AI-powered ad tools, shifting from their traditional walled garden approach.

According to Business Insider, Apple is testing a new AI tool to optimise ad placement within the App Store. This tool is like what Google and Meta offer.

Apple will gradually roll out its AI to additional services such as Maps and Books.

A few advertisers are now participating in a pilot programme to test this new system, making advertising more efficient.

Advertisers need only tell Apple their desired countries, demographics, and budget. Next, the AI takes charge, autonomously analysing the available ad slots in the App Store to find the optimal placement for their ads.

Ads shown on the "Today" page of the App Store, "Search Results," "You Might Also Like" suggestions, and "Search Tags" are all part of this category.

This change shows that Apple is open to taking cues from market leaders who have successfully implemented AI-powered ad platforms—Google with Performance Max and Meta with Advantage+.

According to experts, this is only the beginning. Apple may eventually roll out AI-powered ads to other services, including Maps, Apple TV+, Books, and their recently released sports app.

"Any automated tool like Pmax [Performance Max] will need a variety of placements to generate value," pointed out Eric Seufert, an analyst and investor knowledgeable in mobile development. Mark Gurman of Bloomberg has previously speculated that Apple's advertising ambitions go beyond the App Store, which fits his theory.

A seasoned advertising executive with a wealth of knowledge in data-driven and targeted advertising, Joseph Cady, was hired by Apple, lending credence to this theory. Cady's experience forming strategic alliances with industry heavyweights like Amazon, Google, and TikTok raises the possibility that Apple is gearing up to compete in the increasingly cutthroat advertising world.

Apple is expected to launch an AI-powered ad placement tool soon. The move would allow Apple to create more personalised user experiences and find new ways to generate revenue.