At the same time as fighting competitor-run advertising, Apple is introducing a new way for developers to advertise on the App Store. Previously, developers could promote their apps after users initiated a search on the App Store by targeting specific keywords. For example, if you entered “taxi,” you might see an ad of Uber at the top above search results. However, the new ad space is reaching users In front they are looking for. This can make the app accessible to a wider audience.

This new and more popular ad placement can be found on the Search tab of the App Store, which is visited by millions of Apple device owners every month. Today, the Search tab has two sections below the search box: a “Explore” section that highlights current App Store trends, and a “Recommended” section with recommended apps and games to try out. The ad will appear in the last section at the top of the list of suggested apps.

These new ad placements, which Apple calls “Campaigns with search registers, ”Provided as part of Apple’s Advanced Search Ads Advanced service, they can take advantage of the assets that developers have already uploaded to their App Store product page – such as the app’s name, icon, and subtitle. Because developers buy a direct placement on the App Store, they don’t have to submit keywords like they would for other App Store ads or other creative elements.

Credit: Apple

As with existing search results campaigns, there is no minimum spend on a campaign on the Search tab. Developers can spend as little or as much as they want and then start, stop, or adjust the campaign at any time, Apple says. Ad prices are based on a cost per 1000 impressions (CPM) model. Actual cost is the result of a second price auction that calculates what the developer will pay based on the closest bidder’s willingness to pay. Impressions are counted when at least 50% of the ad is visible for a second, notes Apple.

Apple’s decision to expand its advertising business seems like a calculated move planned with the launch of iOS 14.5, the latest version of the iPhone operating system. Through a function called App Tracking Transparency (ATT), Apple, which will be introduced in iOS 14.5, is cracking down on apps that track users’ data without permission. Once updated, users will see a new pop-up window in each app asking the developer for permission to collect the user information and share it with data brokers and other third parties if they have previously collected this information without users’ consent. Users can also go to their iOS settings to enable or disable app tracking for individual apps at any time.

The change shakes that $ 350 billion digital advertising industry, led by Facebook and Google. Facebook has argued the effects of the change will hurt small businesseswho have historically relied on targeted, personalized ads that they can use to reach potential customers without spending a lot of money. Meanwhile, advertisers have suggested that Apple’s changes will Use its own bottom line at your own expense.

So far, Apple has only responded that the changes were necessary to protect consumer privacy. People should have the right to know “when their data is being collected and shared with other apps and websites,” the company said, “and they should have a choice of whether or not to allow it.”

After early Flurry Analytics dataOnly around 11% of users choose to be tracked after starting iOS 14.5. For app publishers looking to attract new users, this new ad space might look more attractive than it would have if it had been launched before ATT was launched.

Apple’s plans to launch the new ad space were supported by the Financial Times in April, which found that the changes were ultimately more about money – it could also be about control. In the past few years, posting to the App Store has improved a company’s rating as new users have been added. Apple may want to shift that power to itself and its own app store in terms of both app recognition and third party anointing on the next hit apps.

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