Apple Search Ads Expand: AI Limits Exact Match in PPC
▼ Summary
– Apple Ads will expand inventory in early 2026 by adding new ad placements further down App Store search results, beyond the current top position.
– Google confirmed that exact match keywords are ineligible to serve ads within AI Overviews, with only broad match keywords entering those auctions.
– These updates reduce direct advertiser control, as Apple’s new placements cannot be targeted separately and Google’s AI Overviews bypass exact match settings.
– For advertisers, the changes will likely lead to greater reach but also more performance variability, shifting influence toward creative quality and metadata.
– Both platforms illustrate an industry shift where search advertising is expanding onto new surfaces with more automated, interpretive systems.
The digital advertising landscape is shifting, with major platforms expanding reach while altering the traditional levers of control for marketers. Two significant updates from Apple and Google this week underscore this evolution, directly impacting how pay-per-click (PPC) campaigns are managed and where ads can appear. For advertisers, adapting to these changes is no longer optional but essential for maintaining performance.
Apple has officially announced a substantial expansion of its Search Ads inventory within the App Store, set to begin in early 2026. Currently, ads appear solely in the coveted top position of search results. Starting next year, advertisements will also be displayed further down the results page across a wider array of user queries. This move dramatically increases the total available ad space. Apple supports this expansion with compelling data: nearly 65% of App Store downloads happen directly after a search, the platform welcomes 800 million weekly visitors, and over 85% of those visitors download at least one app. Critically, advertisers will not need to manually adjust existing campaigns to qualify for these new placements; ads will be automatically eligible. However, these new positions cannot be targeted or bid on separately from the top ad spot, with the format and cost-per-tap billing model remaining unchanged.
This 2026 inventory expansion is the latest in a series of upgrades Apple has rolled out throughout 2025, building a more sophisticated advertising platform. Earlier this year, the company expanded Custom Product Page (CPP) testing capabilities, allowing more variants tied to specific keywords for better message alignment. Subsequent reporting enhancements provided clearer diagnostics on impression share and keyword performance. More recently, creative refinements for the Today and Search Tabs improved visual consistency. These cumulative updates make the forthcoming inventory growth feel like a natural progression toward a more robust Apple Ads ecosystem.
For advertisers, the implications are twofold. While more placements signal greater potential reach, they also introduce new variability in performance. The top-position ad, known for conversion rates of 60% or higher, will likely remain stable. However, the new lower-funnel placements may alter traffic patterns as user scrolling behavior changes. Advertisers should prepare for incremental installs accompanied by slightly wider performance swings. This shift also elevates the importance of foundational elements like app metadata, product page quality, and a strategic CPP approach, as every ad placement will rely on the same creative assets.
Simultaneously, Google has provided a crucial clarification that exact match keywords are not eligible to serve ads within its AI Overviews. This confirmation came from Google Ads Liaison Ginny Marvin via social media, explaining a pattern many advertisers had observed. Even if an account contains the identical user query in both exact match and broad match, only the broad match keyword can enter the auctions for ad placements within AI Overviews. This means broad match may trigger for queries advertisers assumed would be captured and controlled by their exact match terms. Since Google does not offer separate reporting for AI Overview impressions, performance shifts related to this dynamic can be difficult to attribute directly.
This update fundamentally changes advertiser assumptions about keyword match types within AI-driven search surfaces. The long-standing principle that exact match offers clean, isolated coverage does not apply in the context of AI Overviews. Broad match becomes the sole entry point, which may necessitate adjustments in campaign budget allocation, overall structure, and performance diagnostics. Advertisers relying heavily on exact match for control should anticipate noticeable shifts in query distribution for those terms.
Together, these announcements from Apple and Google highlight a consistent industry theme. Platforms are actively expanding search-based ad inventory, but they are simultaneously reducing the granular control advertisers once took for granted. Apple is introducing new ad slots without allowing separate bidding, while Google is routing a portion of search traffic through an AI layer where exact match keywords are inactive. The classic model of “keyword plus bid plus placement” is evolving into a more interpretive system where platform algorithms play a larger role.
This evolution does not strip advertisers of influence; rather, it redirects that influence toward different factors. Success will increasingly depend on the quality of metadata, the alignment of creative assets, the strategic use of first-party data, and intelligent audience segmentation. These updates serve as a clear reminder for marketing teams to maintain flexibility and a test-and-learn mindset, as new advertising surfaces and formats will continue to emerge.
(Source: Search Engine Journal)
