Apple Inc (NASDAQ: AAPL) is reportedly venturing into AI-driven advertising within its App Store, trialing an automated product similar to Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google's Performance Max and Meta's (NASDAQ: META) Advantage+.
This innovation allows ads to be placed automatically across four existing ad formats, optimizing for the advertiser's budget and acquisition costs while targeting specific audiences and regions.
Currently, in testing with a select group of advertisers, this initiative aims to enhance the effectiveness of Apple Search Ads, Business Insider reports.
Apple's current focus is on the App Store, but there's speculation that this AI tool could extend to other Apple services.
Recent reports indicated Apple dumping its EV development project Titan to emphasize its AI endeavors.
Experts predicted $33 billion in AI opportunities for Apple annually.
Experts predict this automated tool could precede new advertising opportunities within Apple's ecosystem, potentially including Maps, Apple TV+, and other apps. Apple's advertising venture, predominantly based on App Store search ads, is reportedly projected to yield $7 billion in revenue this year, with recent expansions into MLS game sponsorships on Apple TV and strategic hires in adtech and TV-ad sales hinting at broader advertising plans, possibly including an ad-supported tier for Apple TV+.
Investors can gain exposure to Apple via Vanguard Information Tech ETF (NASDAQ: VGT) and SPDR Select Sector Fund - Technology (NYSE: XLK).
Price Action: AAPL shares traded lower by 0.09% at $172.60 on the last check Tuesday.