Apple Increases the Number of Advertisements in the Iphone App Store

Apple+ units for purchase on the Today tab, which functions as the app’s home page, and on specific product pages on Tuesday as part of the expansion of its search advertising inventory on the App Store. The new ad units mark a major increase in Apple’s available ad space, which can now only be used to promote apps for Apple products like the iPhone.

The launch of the new ad units, which was initially planned earlier this year, coincides with increased competition for Apple’s advertising revenue. Apple’s advertising inventory featured only one unit on the search tab and one on the search results page up until Tuesday.

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Apple stated on its developer blog that with the addition of the Today tab and product page ad placements, “you can now drive discovery of your app in more moments across the App Store — when customers first come, search for a particular item, and explore apps to download. The appearance of new ad units under the “You Might Also Like” list of recommended apps on app pages has been confirmed by CNBC.

The ad unit is plainly identified, and the background is blue. The revenue from Apple’s advertising sales is included in the company’s services segment, which also includes revenue from the App Store, online subscriptions, hardware warranties, and licensing agreements with search giants like Google. Apple reported total service revenue of $68 billion for its fiscal year 2021.

However, rivals like Facebook’s parent company Meta have accused Apple of hurting their businesses by introducing new privacy measures at the same time that it grows its own advertising business.

Apple announced App Tracking Transparency (ATT) last year, giving iPhone owners the choice to withhold a special tracking ID from app developers. The majority of iPhone users opt not to share, which makes it difficult for internet advertisers to precisely track the effectiveness of their adverts.

Apple claims to have prioritized user privacy in making the adjustment. The business has previously stated that customers have the option to disable Apple personalization for ads and restrict the company from accessing specific categories of data to target search advertisements. Bank of America predicted earlier this year that only its search ads will bring in $5 billion for Apple this year.

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