Apple signaled App Store ads last year, but few iPhone and iPad users had seen them in search results until now. That is changing. On every iOS 10 device, App Store searches can show ads tied to the keywords people type.
In simple terms, the system works like Google AdWords. The App Store checks whether an ad matches the search term and, if it does, may show it. Apps that fit the query better organically still rank above the paid slot. Ads also compete with each other: higher bids can push a paid result above a cheaper one.
Apple cares a lot about user experience. Ads that feel unrelated tend to get few taps and can be pulled. Advertisers get data on which keywords people used before they tapped an ad, so developers can tune targeting and reach a wider audience.
After saying last year it wanted a fairer field for developers, Apple’s new tool at least gives smaller budgets a clearer path to visibility in a crowded App Store.