Apple is set to increase profits by adding a new ad slot to the App Store

Apple is set to increase profits by adding a new ad slot to the App Store

While cracking down on ad companies run by competitors, Apple is introducing a new method for developers to advertise on the App Store. Previously, developers could promote their apps after users started searches in the App Store by targeting specific keywords. For example, if you type in “taxi,” you may see Uber’s ads in the top position in search results. However, the new ad space will arrive before users search. This can make the app open to a wider audience.

This new and more prominent ad placement can be found in the “Search” tab of the App Store, which is visited by millions of Apple device owners each month. Currently, the “Search” tab offers two sections below the search box: the “Discovery” section highlights current trends in the App Store, and the “Recommendations” section offers recommended apps and games for you to try. Ads will appear in the second half at the top of the “Suggested Apps” list.

These new ad placements (called Apple’s “Search Tag Campaigns”) are now available as part of Apple’s Search Ads Advanced service and can take advantage of resources that developers have uploaded to their App Store product pages (such as the name of the application). Icons and subtitles. Since developers buy direct placements from the App Store, they don’t need to submit keywords like other App Store ads or any other creative items.

Like existing search results campaigns, campaigns in the “Search” tab do not require a minimum investment. Apple says developers can spend any amount of money and then start, stop or adjust ad campaigns at any time. Advertising pricing is based on a cost per thousand impressions (CPM) model. The actual cost is the result of the second bid, which will calculate the price that the developer will pay based on the price that the next closest bidder is willing to pay. Apple notes that when at least 50% of ads are viewable for one second, the number of impressions is counted.

Apple’s decision to expand its advertising business seems to have been launched in due course with the release of iOS 14.5 (the latest version of the iPhone operating system). With a feature called “App Tracking Transparency” (ATT) introduced in iOS 14.5, Apple can crackdown on apps that track user data without permission. After the update, users will see a new pop-up box appear in each application, if the developer previously collected this information without the user’s consent, the developer will ask them to collect and share with data brokers and other third parties User information. Users can also enter their iOS settings at any time to turn app tracking on or off for a single app.

This shift is shaking up the digital advertising industry, led by Facebook and Google, which is valued at more than $ 35 billion. Facebook argues that the impact of this change will hurt small businesses, which have traditionally relied on highly targeted and personalized advertising to allow them to attract potential customers without spending a lot of money. At the same time, the advertisers suggested that Apple’s changes will be at the expense of their own interests, in order to benefit their results.

But so far, Apple’s response has only changed to protect consumer privacy. The company stated that people should have the right to know “when to collect and share their data on other applications and websites,” and they should have the right to choose whether or not to allow it.

According to early data from Flurry Analytics, after the release of iOS 14.5, only about 11% of users chose to accept tracking. For app publishers hoping to attract new users, if they launch new ad slots before ATT launches, it can be more attractive than that.

Apple’s plan to launch new ad slots was reported in the Financial Times in April, noting that in the end, these changes may be more money-related, they can also be control-related. In recent years, with the influx of new users, receiving recommendations in the App Store can increase the valuation of the company. Apple may wish to transfer its third-party proxy to itself and its own App Store for app discovery and competition. The next fashion app.