Apple Admits to Increasing System Ads, Placing More App Store Spots by Year's End

As the end of the year shopping season approaches in the U.S., tech companies are also getting more serious about their advertising business, and Apple is preparing to add new ad space within the App Store for developers to buy, meaning that you may see more ads in the App Store before the end of the year.

On Tuesday, local time, Apple sent a message to developers inviting them to an online meeting to encourage them to buy ads. The invitation revealed that new "ad placements" in the iOS App Store will be available "in time for this holiday season.

In addition, Eric Seufert, developer and founder of Mobile Dev Memo, showed the invitation on his Twitter page, and IT Home has learned that Apple's webinar is scheduled for Wednesday, September 21, and we'll have more on the results then.

In fact, earlier this year, Apple announced that it would be expanding its advertising business by adding new ad spots to the App Store. While the details of when the new ad space would be available to developers were unclear at the time, it looks like Apple is ready to put that plan into action by the end of this year.

Apps are more important than ever to consumers and brands. And with new opportunities for Apple Search Ads on the horizon, you can promote your app in the App Store and attract more users this holiday season. Join us for a webinar to help you plan your year-end app promotion strategy. We look forward to seeing you.

Adding new ad space means the number of Apple ad spaces will increase significantly. In recent years, the App Store has had only two ad spots, one in the Search tab and one on the search results page.

This move comes at a time when Apple is investing in increasing revenue from the service. Apple notes that App Store ads offer developers a great opportunity to promote their apps while also protecting user privacy.

But where exactly will the newly available ad space be placed? Apple isn't saying, but in July it was announced that Apple was planning to expand the menu to include an ad spot under the Today tab, which is located on the App Store home page, as well as an ad spot on the App product page under "You Might Also Like).

Apple's ad revenue is part of its services revenue, which already exceeds $68 billion in 2021. Bank of America analyst Wamsi Mohan believes that Apple's ad revenue from Apple Search Ads could reach $5 billion this year. In addition, recent studies have shown that the iOS App Tracking Transparency feature has led to a 40 percent increase in the price of in-app purchases, as developers lose profits from ads and so are left looking for users to make up for it.