Apple is reportedly testing a cutting-edge AI-driven advertising product to boost its already thriving $7 billion ad business, as reported by Business Insider. This innovative approach aims to enhance the placement of ads within the App Store, similar to Google’s Performance Max and Meta’s Advantage+.

Here are some key points about Apple’s new advertising product:

– The AI-powered tool autonomously determines the optimal placement of ads within the App Store.
– Advertisers input their budget, cost-per-acquisition target, audience preferences, and desired countries for strategic ad placements.
– The new campaign type is currently under testing with select advertisers, with an anticipated official rollout in the near future.

While Apple has not made any official comments on these trials yet, industry insiders predict a potential expansion beyond App Store placements into other Apple properties like Maps, Apple TV+, and its Books app.

Google and Meta have seen significant success with similar advertising tools like Performance Max and Advantage+, driving substantial growth for both companies. Despite some advertisers expressing skepticism about detailed ad placement breakdowns with Google’s tool, Apple seems poised to make waves in the advertising industry.

Analysts forecast that Apple’s advertising revenue could exceed $7 billion this year, with a substantial portion coming from App Store search ads. Recent moves, such as ad integrations during Major League Soccer broadcasts on Apple TV and strategic hires in adtech and TV-ad sales, indicate broader ambitions in the advertising space for Apple.