In an effort to increase its ad revenue by doubling its current ad-free iPhones, Apple was reported to be adding more ads to the App Store. Although it was initially suggested that Apple Books and Maps would be given the ad treatment, Apple appears to be adding more ads to the App Store first. MacRumors […]
In an effort to increase its ad revenue by doubling its current ad-free iPhones, Apple was reported to be adding more ads to the App Store. Although it was initially suggested that Apple Books and Maps would be given the ad treatment, Apple appears to be adding more ads to the App Store first.
MacRumors received an email from the company telling developers that it would add more ads to the App Store on Tuesday October 25, in all markets except China. To distinguish them from regular listings, ads will have a blue background and a small logo that reads «Ad».
Although ads on the App store aren’t new, it is a step up for developers who want to get their apps noticed or worry about knock-offs.
Adverts used keywords that were entered into the search bar. They will now appear in the «Today», tab, which was previously reserved for editorial staff hand-picked selections, as well as the section «You Might Also Like» at the bottom of the app’s listing.
The latter could be controversial for developers as app makers can find links to competitors right on their app description page.
Apple explains that ads appear at the top on the You Might Also Like List to users who scroll to the bottom of relevant product pages and are actively researching apps to help them decide whether or not to download. Your ad can be run in all app categories or you can narrow down the categories it runs.
This could lead to app developers being very expensive. Developer Florian Muella stated it on Twitter. «It’s another way of increasing the effective tax rate on apps, forcing developers to purchase ads on their app pages in order that others steer customers away.» This kind of expense is particularly difficult to justify for developers who make ad-supported, free apps.
If Apple is determined to make its ads business reach $10 billion annually, it is difficult to imagine a path that doesn’t take through the highly lucrative App Store.