Apple is rolling out new ads that could grow its booming ad division by $1 billion a year. Here’s how they work, how they’re priced, and what they say about its broader ad ambitions

• Apple is introducing two new ad formats to its App Store.
• One analyst estimates the two formats could draw in $1 billion in annual ad revenue by 2027.
• Experts said it’s another signal of Apple’s reinvigorated focus on the ads business.

Apple has begun briefing advertisers and developers in recent weeks about two new ad formats it plans to roll out within the App Store.

The new ads mark the latest development in the rapid expansion of Apple’s advertising division — a high-margin unit that has grown in importance within the company recently. 

The “Today” and “You Might Also Like” ads are unlikely to be the best-performing of the four ad units it will soon offer in its App Store, experts said. Still, they could prove lucrative — to the tune of $1 billion in additional revenue by 2027, according to one analyst’s estimate.