Ads will appear in the App Store even before the application name is entered


In February of this year, 9to5Mac reported that Apple was looking for a new ad spot in iOS 14.5. It has now become known that recommendations are appearing on the home page of the Search tab in the App Store. And even before the user enters a search query. Previously, advertisements were only displayed next to search results and matched the user’s search queries.

The Financial Times reports that testing of such ads has already been completed, and Apple will make these changes before the end of this month. Search advertising on the App Store appeared in 2016 as the company sought to diversify its revenue. The app store currently generates most of Apple’s revenue through in-app purchase commissions, which range from 15 to 30%. Analysts estimate that search advertising currently generates up to $ 1 billion a year for the company. The new type of advertising appears more prominently in the App Store application, since it is displayed immediately in the Search tab and does not require any action from users.

The release of iOS 14.5 will take place next week. The new version of the operating system will include a new in-app tracking transparency policy. This means that third-party ad platforms will need to request permissions from users to collect data and serve targeted ads. The largest player in this market, Facebook, has already said that smaller players will suffer as they will not be able to fine-tune mobile targeting for their ad campaigns. Of course, this will also negatively impact revenue and Facebook.

Apple itself uses data from users’ Apple IDs to serve targeted ads. Basically, ads in App Store search are owned by the company because they own the store. However, critics argue that Apple has added the new in-app tracking transparency rules precisely in such a way as to ensure it does not affect its own business interests.

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