September 30, 2022
Apple is planning new spots for ads in the App Store by the end of the year

Apple CEO Tim Cook holds the new iPhone 14 at an Apple event at its headquarters in Cupertino, California on September 7, 2022.

Carlos Barria | Reuters

Apple plans to release new ad “placements” as soon as this year’s holiday season, according to a message sent Tuesday to invite developers to an online session to encourage them to buy ads. Used to be.

The new ad units represent a significant expansion to Apple’s ad inventory, which is focused on its App Store. In recent years, Apple’s ad listing has narrowed down to one unit in the Search tab on the App Store and one unit on the search results page.

“With the new opportunities coming to Apple Search Ads, you can promote your app on the App Store to add even more customers this holiday season,” according to the message, which was deployment of Confirmed to CNBC by Eric Seifert, founder of Mobile Dev Memo and a developer who received the invite.

The message to developers didn’t specify where the new ad placements would be offered, but in July, multiple Apple,SPECIALIST websites reported that Apple was planning to expand its menu with an ad unit on the Today tab, which is the front page of the App Store, and another sponsored unit on app product pages under the banner “You Might Also Like”. Is.

An Apple representative did not respond to a request for comment.

The expansion in Apple’s inventory is because Apple’s advertising business is under scrutiny.

Apple’s advertising revenue is reported as part of its services business, which includes warranties, search engine licensing, App Store sales and online subscription revenue, among other things. Apple reported more than $68 billion in services revenue in 2021.

Bank of America analyst Vamsi Mohan estimated in July that Apple could generate $5 billion in advertising revenue from Apple Search ads this year alone.

In 2021, Apple released App Tracking Transparency, where iPhone owners are asked before sharing a unique ID with app developers. Most iPhone owners choose not to share, preventing online advertisers from accurately tracking the performance of their ads.

Apple says it has made this change because of its corporate position on user privacy.

Advertising companies, including Facebook parent Meta, have blasted ATT as anti-competitive and self-serving. Meta said Apple’s change could cost it $10 billion this year.

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