Apple is planning to use artificial intelligence to optimize App Store ads

Apple is testing AI-powered App Store ad placements

The company has begun testing with a small group of advertisers. The platform automatically decides the best spot to place ads within the App Store.

Apple has told advertisers that it is conducting tests to see if it can improve the performance of its Apple Search Ads. A source told Business Insider that they expect the company to introduce the product in the coming months.

Currently, Apple's available ad slots include a placement on the App Store Today page and a slot in the "You Might Also Like" section of an app's product page. Advertisers can enter their budget and intended audience in the new campaign type, and the algorithm will decide where best to place the ads across the available format.

Apple's own advertising business is a nascent source of revenue for the iPhone maker. Some analysts believe Apple's ad business could grow to $6 billion by 2025, with $4.1 billion of that contributed by Search Ads.

However, Apple's advertising hasn't been without controversy. In October 2022, gambling advertisements were appearing on nearly every search, regardless of what a user was searching for. The ads began showing up next to children's apps, and even gambling addiction recovery apps.