Apple plans to reveal new places 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, September 7, 2022.

Carlos Barrio | Reuters

apple It plans to launch new ad “placements” around the holiday season, according to a letter sent to developers on Tuesday inviting them to an online session to encourage them to buy ads.

The new locations represent a significant expansion of Apple’s ad inventory, which is focused on its App Store. In recent years, Apple’s ad inventory has been limited to one unit in the search tab of the App Store and one unit on the search results page.

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According to the message, “With new opportunities for Apple search ads, you can promote your apps across the App Store to attract more customers this holiday season,” Spread by Mobile Dev Memo founder Eric Seufert and confirmed to CNBC by a developer who received the invitation.

The letter to developers did not specify where to display the new ad placements, but in July Apple announce she was Planning To expand his list with an ad unit on the Today tab, which is the front page of the App Store, and another ad unit on the app’s product pages under the “You may also like” tag.

“Apple search ads provide opportunities for developers of all sizes to grow their businesses. Like our other ad offerings, these new ad placements are built on the same basis – they will only contain content from approved App Store product pages in apps, and they will adhere to the same strict privacy standards.” An Apple representative told CNBC.

The inventory expansion comes as Apple’s advertising business comes under greater 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 services revenue of more than $68 billion in 2021.

Bank of America analyst Wamsey Mohan estimated in July that Apple could generate $5 billion in advertising revenue from Apple search ads alone in 2022.

In 2021, Apple released the App Tracking Transparency (ATT) program to give iPhone users the option to either share a unique identifier with app developers, or decline to share it. Most iPhone owners choose not to participate, which prevents online advertisers from accurately tracking the performance of their ads.

Apple says it made the change because of its corporate stance on user privacy. It allows its users to turn off personalized Apple ads on the App Store and prevent Apple from using data such as account information and past purchases to target search ads. 78% of users turn off personal Apple ads, a rate similar to some estimates Users who turn off ATT.

Advertising companies including the parent Facebook dead They have criticized ATT as anti-competitive and self-serving. Said dead to Apple Change could cost her $10 billion this year.