According to a letter sent Tuesday to developers inviting them to an online session to persuade them to buy ads, Apple intends to introduce new ad “placements” as early as the holiday season.

The new ads mark a significant expansion of advertising inventory focused on Apple’s App Store. Apple’s advertising inventory was recently limited to one unit on the search results page and one unit on the Search tab of the App Store.

The uploaded statement reads: “With new opportunities for Apple Search Ads, you can promote your apps on the App Store to reach even more people this holiday season.”

CNBC

The developer notification made no mention of the locations of the new ad slots, but in July Apple revealed plans to expand its menu with an ad on the Today tab, which serves as the homepage of the App Store, and another sponsored unit on the app product. pages under the banner “You may also like”.

“Apple Search Ads gives developers of all sizes the opportunity to grow their business. These new advertising placements are designed on the same principles as our current advertising products; they will only contain material from the apps’ authorized App Store product pages and adhere to the same strict privacy requirements, an Apple representative told CNBC.

The rise in inventory coincides with growing scrutiny of Apple’s advertising business.

Along with warranties, search engine licenses, App Store sales and online subscription revenue, Apple’s advertising revenue is listed as a component of its services business. Apple’s services revenue in 2021 was over $68 billion.

Bank of America analyst Wamsi Mohan predicted in July that Apple could make $5 billion in advertising revenue in 2022 from Apple Search Ads alone.

Apple announced App Tracking Transparency (ATT) in 2021 to give iPhone consumers the choice to share or not share a specific ID with app developers. The majority of iPhone users choose not to share, making it difficult for Internet advertisers to accurately track the effectiveness of their ads.

Apple says this has changed due to its corporate stance on customer privacy. It allows its own customers to prevent Apple from using data such as account information and past purchases to target search ads and to opt out of Apple’s personalized ads on the App Store. 78% of users opt out of Apple’s personal ads, which is comparable to some estimates of the percentage of users opting out of ATT.

Ad companies, such as Facebook’s parent company Meta, have criticized ATT for being anti-competitive and selfish. Apple’s change, according to Meta, could cost it $10 billion this year.