As part of the iOS 14.5 beta, it appears Apple is testing new ways to monetize the App Store. Users of the existing App Store search ad app now see users that a new sponsored ad slot appears on the ‘Search’ tab as a ‘suggested’ item.
Previously, Apple only displayed ads in the App Store when users searched for an app with advertisers bidding on keywords, similar to Google Search ads. This new type of ad is obviously more prominent because it is displayed to the user before they search for anything at all.
Since the new sponsored ad slot is only now appearing on iOS 14.5 beta seeds, it’s possible that Apple may not be ready to officially launch this ad slot when iOS 14.5 is released to everyone. It may just be the use of the beta period to determine user engagement, average CTA stats and so on.
App Store search advertising is a small but growing part of Apple’s total service revenue. App Store search ads launched in 2016, with Apple looking for new revenue growth areas in services beyond the 15-30% savings Apple receives on paid apps and in-app purchases.
How many sponsored advertising customers see on iOS is already a controversial topic, as Apple is already charging a neat premium in the first place. Recent changes include the addition of advertising banners for Apple services such as TV + and Fitness + in the Settings app. App Store search advertising is, of course, the most blatant form, because Apple makes money directly from the impressions it generates for advertisers.
However, Apple’s own advertising schemes are even more in the spotlight due to the upcoming policy for tracking transparent app tracking. Some groups claim that Apple is using ATT as a way to establish itself as a leading provider of ads on the iOS platform and in the process sabotage all competing ad networks. One competitive advertising network where developers can promote their apps to a wider audience is Facebook, for example. Last month, Facebook CEO Mark Zuckerberg said Apple had an “incentive to interfere” with its business.
App Store search ads allow app developers to target iPhone and iPad users to relatively fine demographics, and Apple uses all of the information associated with the user’s Apple ID. Target can be eliminated by going to Settings -> Privacy -> Apple Advertising -> Personalized ads.
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