According to sources cited by Business Insider, Apple is reportedly developing a new advertising tool for the App Store that leverages AI technology. This tool is currently being tested with select advertisers. The functionality of the tool involves recommending optimal placement for advertisements within the App Store, similar to Google’s Performance Max and Meta’s Advantage+ tools. The current advertising formats in the App Store include search ads, displayed alongside search results, on the Today tab, and in the recommended apps section. Apple’s new tool is designed to enhance advertising efficiency, particularly in search results display.
It is projected that by 2023, Apple could generate around $1 billion in revenue from the advertising business, with potential for growth up to $7 billion by expanding the capabilities of this tool beyond the App Store.
TLDR: Apple is developing an AI-powered advertising tool for the App Store, expected to boost revenue significantly by 2023 and potentially reach $7 billion in revenue.
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