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Apple puts more ads in the iPhone App Store

New announcements on the Apple App Store


Apple Tuesday expanded its inventory of search ads on its App Store to include units for purchase on the Today tab — essentially the front page of the app — and on individual product pages.

The new ad units represent a significant expansion of Apple’s advertising inventory, which can only advertise one type of product: apps for Apple devices like the iPhone.

The introduction of the new ad units was first announced earlier this year and comes as Apple’s advertising business has come under intense scrutiny from rivals.

Prior to Tuesday, Apple’s ad inventory was limited to one unit on the search tab and one on the search results page.

“And now, with the new Today tab and new ad placements on the product page, you can get your app discovered faster on the App Store – when customers first arrive, search for something something specific and browse apps for download,” Apple wrote of its developer. Blog.

CNBC has confirmed new ad units appearing on app pages under a list of suggested apps titled “You May Also Like.” The ad unit is clearly labeled and displayed on a blue background.

Apple’s advertising sales are reported as part of its services business, which also includes App Store sales, online subscription revenue, hardware warranties, and revenue from licensing agreements with research companies like google. In total, Apple reported $68 billion in service sales in its 2021 fiscal year.

But competitors such as Facebook’s parent company Meta have accused Apple of hobbling their business with new privacy features, just as it is growing its own advertising business.

Last year, Apple released App Tracking Transparency (ATT) which gave iPhone users the option to opt out of sharing a unique tracking ID with app developers. Most iPhone owners choose not to share, which prevents online advertisers from accurately tracking the performance of their ads.

Apple says it made the change because of the company’s focus on user privacy and has previously said it allows its users to opt out of Apple Personalization for Ads and prevent the company from use certain types of data to target search advertisements.

Earlier this year, Bank of America estimated that Apple could generate $5 billion in revenue this year from its search ads alone.


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