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Home›Search Engine›Apple plans to unveil new spots for ads in the App Store by the end of the year

Apple plans to unveil new spots for ads in the App Store by the end of the year

By Katharine Fleischmann
September 13, 2022
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Apple CEO Tim Cook holds the new iPhone 14 during an Apple event at their headquarters in Cupertino, California, September 7, 2022.

Carlos Barria | Reuters

Apple plans to roll out new ad “placements” as soon as the holiday season, according to a message sent to developers on Tuesday inviting them to an online session to encourage them to buy ads.

The new spots represent a significant expansion in Apple’s advertising inventory, which focuses on its App Store. In recent years, Apple’s advertising inventory has been limited to one unit on the App Store Search tab and one on the search results page.

“With new opportunities coming to Apple Search Ads, you can promote your apps across the App Store to attract more customers this holiday season,” according to the message, which posted by Mobile Dev Memo founder Eric Seufert and confirmed to CNBC by a developer who received an invitation.

The message to developers did not specify where the new ad placements would be offered, but in July Apple announced that it plans to expand its menu with an ad unit on the Today tab, which is the front page of the App Store, and one more. sponsored unit on the app’s product pages under the “You May Also Like” banner.

“Apple Search Ads provide opportunities for developers of all sizes to grow their business. Like our other advertising offerings, these new ad placements are built on the same foundation— they will only contain content from App Store product pages that have been approved by the apps, and will follow the same strict privacy standards,” an Apple representative told CNBC.

The expansion in inventory comes as Apple’s advertising business comes under increased scrutiny.

Apple’s advertising revenue is reported as part of its services business, which also 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 Wamsi Mohan estimated in July that Apple could generate $5 billion in advertising revenue from Apple Search Ads alone by 2022.

In 2021, Apple released App Tracking Transparency (ATT) to give iPhone users the option to share a unique ID with app developers, or refuse to share it. Most iPhone owners choose not to share, preventing online advertisers from accurately tracking the performance of their ads.

Apple said it made the change because of its corporate position on user privacy. This allows its own users to turn off personalized Apple ads in the App Store and prevent Apple from using data such as account information and past purchases to target search ads . 78% of users turned off Apple’s personal ads, similar to the rate in some estimates of users turning off ATT.

Advertising companies including Facebook parent Meta blasted ATT as anticompetitive and self-serving. Meta said Apple’s turnaround could cost $10 billion this year.

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