Apple Taps AI For Advertisement Placement

In an unconventional move, technology giant Apple is reportedly testing an Artificial Intelligence (AI)-based advertising platform. The AI system, which decides where to place ads in the App Store, is piquing the interest of professionals and customers alike.

The novel technology is currently being tested with a limited group of Apple partners. For now, it is focused on elevating the effectiveness of ad campaigns within the App Store search functionality. Nonetheless, Business Insider speculates that the AI-based platform could be integrated into other Apple services, progressively expanding the range of the company’s ad-supported offerings.

AI-driven advertisement deployment is not a novel concept in the marketing sphere – tech giants such as Google and Facebook have similar systems in place. But for Apple, with its relatively modest pallet of ad formats, this move is somewhat unexpected. In the App Store, developers can pay for their apps to appear on the ‘Today’ and ‘Search’ tabs, at the top of search results, and at the bottom of other apps’ pages. Apple also proposes ad campaigns for ‘News’ and ‘Stocks’ apps, though most of these services involve intermediaries like NBCUniversal.

As time progresses, Apple will likely offer more ad slots within the App Store’s search, and it may widen the scope of ad placements to other mobile apps as well. In this context, an AI-based ad placement tool becomes highly relevant.

Several years ago, Bloomberg’s Mark Gurman reported Apple’s plans to extend its advertising business to other applications, like Apple Maps, and services including ‘Books’ and ‘Podcasts’. Nonetheless, there have been no official declarations from the company regarding these plans.

Apple’s initiative to utilize AI for advertising strategies raises questions about the future of advertising in mobile applications and how it will shape user experience. Apple, long-term advocates for minimal advertising, may be reconsidering its strategy, surely affecting the entire mobile advertising market.