Apple testing new location for ads in the Search tab of App Store with iOS 14.5 beta

According to a recent report, it looks like Apple is testing out a new way to integrate ads for apps in the App Store in the iOS 14.5 beta. An advertised app now appears as the first suggested app when users head to the Search tab in the App Store app.

Previously, Apple only displayed ads in the App Stores when users searched for an app with advertisers depending on keywords, similar to Google Search ads. This new ad type is more prominent as it is displayed to users before they search for anything.

Apple is testing a new location for ads in App Store with iOS 14.5 beta

The new sponsored ad slot is only appearing on iOS 14.5 beta seeds right now. As reported by 9to5Mac, the Cupertino tech company appears to be searching for additional ways to build up its App Store ads business.

“App Store Search Ads are a small but growing slice of Apple’s overall Services revenue. App Store Search ads launched in 2016, with Apple seeking new revenue growth areas in services beyond the 15-30% cut Apple receives on paid apps and in-app purchases.”

The revenue generated through the ads will be included in Apple’s Services unit, its largest division by revenue. This unit includes the App Store, iCloud, Apple Music, Fitness+, AppleCare+, Apple TV+, Apple News+, Apple Arcade, Apple One, Apple Pay, and more. In 2020, Apple’s Services unit racked up $53.77 billion in revenue.

Since this advertising space showed up as a part of the iOS 14.5 beta, we do not know if it will remain on the platform once the public version of iOS 14.5 is released, Apple could just be using the ad slot to gauge user engagement. It is unclear when the latest version of iOS 14 will be released to the public.

Apple is testing a new location for ads in App Store with iOS 14.5 beta

Asma Hussain

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