Apple silently buys Google ads for subscription apps in the App Store

Apple can invest directly in Google to grow its business by buying search engine ads. That is, if a more expensive app with a subscription in the App Store sells more, the more Apple earns by charging its commission. However, this procedure may not be correct, as you will not have the consent of the creators of the application.

As noted by some editors, these methods have been in use for several years.

Apple pays for app ads on Google

Apple will silently buy Google ads to increase awareness of valuable apps and generate revenue from in-app subscription sales. In accordance with Forbes, ads are placed without the consent of the developers and Google will not remove them.

Sources told the site that this is a free form of advertising that has been around for at least two years.

Advertisements include major apps such as Tinder, Plenty of Fish and Bumble, multimedia giant HBO, publisher Masterclass for education and training, and language learning service Babbel.

The ads do not reveal that they are from Apple, and to most observers they just look like ads for the brands and app publishers themselves that go straight to the App Store. However, these ads have similar follow links with nearly identical parameters, which indicate that they are likely behind the marketing agency.

Apple is trying to maximize the money it makes by increasing the number of in-app purchases that people buy from the Apple Store. Apple has found that it can make more money from these programmers if they push people to shop in the App Store rather than on their web pages.

This was reported by a source.

Get rid of visibility on Google

IPhone apps that offer subscription to ongoing services may charge for the service through the App Store, or, if they have multiple ways to provide the service, they may charge the customer through their own websites.

In this sense, if apps are used in a standard payable format on the Apple platform, Apple charges 30% of revenue for the first year and drops to 15% for the second year and beyond. However, if companies like Amazon or HBO sell the persistent service on their own websites, they can get by without Apple's commission and get all the revenue.

All in all, isn't it worth paying for Apple to expand its store and apps?

There is some logic behind what Apple wants to do because its business charges a fee to sell third-party app subscriptions in its store. However, some programmers do not perceive this as a positive action.

According to one of these programmers, this action by the Cupertino giant hurts the creators' business. The business will grow based on what you think the customer is worth, and if the customer is worth 30% less, your margin will disappear.

Some subscriptions cost hundreds of dollars a year. These can be classrooms, education, fitness, or dating apps. Apple advertisements can cost $ 5-10 per successful subscription, and revenue can easily be $ 50 or more.

Besides dollars, there are additional costs. That is, when people buy access to a service through an iOS app subscription, they are essentially Apple customers. For privacy reasons, Apple does not share much information about them with the apps or the companies that operate them.

Basically, the developers, some of them, want to be able to host their app in the App Store, but have control over it outside of the App Store. According to them, the proximity of the user to the programmer benefits the user.

Moreover, the fact that Apple "advertises" in the same places where developers advertise reduced the ability to direct users to the developer's website. And if you place bids on the same ad placement, the price of the place increases.