Apple, which previously served Search Ads to users searching for an app, started showing users a new ad slot as part of the iOS 14.5 beta. Some iOS users have started seeing a new sponsored ad slot as a “recommended” item in the Search tab. The new ad slot appears before users search an app.
For now, the new sponsored ad slot is only visible on iOS 14.5 beta but it is unknown whether Apple will show the new model to all users following the release of iOS.14.5. Looks like Apple is testing its efficiency for now with the beta version.
The Search Ads model that Apple currently uses is based on advertisers’ bidding on keywords, just like Google’s search ads. Apparently, with Apple’s App Tracking Transparency coming live, the company is looking for new ad models to monetize the App Store. ATT feature will roll out early spring with iOS 14 update.