Apple is Reportedly Experimenting With an AI-Powered Ad Performance Tool

Apple is reportedly experimenting with a new artificial intelligence (AI)-powered tool that will help advertisers promote their apps on its App Store. The new AI ad performance tool can determine the best area to display the ad in order to reach the targets set by the advertisers. Currently, the product is in the testing phase and the access is limited to a small group of advertisers. Notably, Apple CEO Tim Cook highlighted last month that the company was working on generative AI features that will arrive later in 2024.

Speaking with unnamed sources familiar with the matter, a Business Insider report claimed that Apple was working on an AI tool designed for the App Store. Once advertisers enter their budget, cost-per-acquisition target, and the countries where they want to advertise, the product's algorithm works out the best places to feature the ads in order to maximise visibility and get conversions, as per the report.

Currently, Apple displays ads on three pages in the App Store. First is on the Today tab, second is on the search result page, and third is the bottom of the app information page under the You might also like banner. Other than these, ads also appear on the Search tab under the Suggested label. The AI tool will reportedly determine the best space to show the ad from these four options. It is unclear whether it will also offer analysis in terms of the best time to place the ad or demographic targeting.

Notably, this particular tool appears to be based on predictive analysis, a separate branch of AI and machine learning (ML) compared to generative AI. This is an older technology which is still developing and is used by many tech platforms for the analysis of a large data set and for predicting future actions based on patterns and trends within the data. For reference, Google uses Performance Max which was launched in 2020, and Meta uses Advantage+ which debuted in 2022 for AI-based ad placements.

Apple might also see new generative AI features this year. Cook, during the company's quarterly earning calls, revealed that the Cupertino-based tech giant has been spending a “tremendous amount of time and effort” on AI and some of these features will be released later this year.