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  • Apple is preparing a new ad unit that will sit atop the “Suggested Apps” page in the App Store.
  • Execs briefed on the format said it would be charged on a CPM basis, with some targeting options.
  • The news comes as Apple rolls out its privacy update, which puts the squeeze on ad tracking.

Apple is getting ready to launch a new advertising format, Suggested Apps, that will give developers a valuable piece of real estate to help get their apps discovered.

The move comes as Apple rolls out a new privacy update, AppTrackingTransparency, on Monday that will require app owners like Facebook to get users’ permission to track them across other apps and websites. Mobile-marketing experts expect consumer opt-in rates to be low, which would hamper advertisers’ ability to precision-target users with ads within apps and measure the effectiveness of their advertising.

If developers find it harder to recruit new users via targeted in-app ads, they will most likely look to shift their ad budgets to other venues to promote their apps. They might spend more with traditional media such as television or outdoor advertising. They could also spend more on Apple’s App Store search ads, bidding on keywords related to their apps. Or they might look to a blend of the two approaches.

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