Apple is quietly buying ads for apps that direct users to the App Store, the developers claim

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Apple is said to be quietly buying Google search ads for high-value apps on the App Store – and some developers are concerned that this is hurting their revenue.

Several application publishers have said so Forbes that Apple “secretly” buys Google ads that direct users to enter the app in the App Store, rather than to the developer’s website.

“Apple is trying to maximize the money it earns by encouraging purchases within apps that people buy through the Apple Store,” one source said Forbes. “Apple has realized that they can make more money from these developers if they get people in the App Store to shop there compared to the web stream.”

According to the report, applications advertised in Google searches include Masterclass, HBO, Babble, Tinder and Bundle. The ads themselves do not reveal the advertiser, although they all have almost identical tracking parameters – which probably indicates that only one person buys them.

Forbes, it is worth noting, could not confirm that Apple was indeed a buyer of commercials. That information came from the developers. It is probably based on the fact that the application manufacturers did not buy the ads and that the ads go directly to the App Store link.

Some developers have stated to the publication that the ads could harm their business due to the 15% to 30% reduction that Apple takes on the purchase of applications and applications.

The average user who clicks on an ad may not know that the developers did not place the ad. If a new user logs in via the App Store instead of the app website, the subscription is subject to a 15% to 30% reduction.

“You build your growth based on what you think the customer is worth, and if the customer is worth 30% less, your margin disappears,” said one source who chose to remain anonymous for fear of retaliation.

In addition, the report states that commercials make advertising more expensive for actual app developers. This is because prices rise when multiple parties bid on the same ad slots.

At least one marketer said Forbes that many brands featured in commercials in the past have aggressively tried to circumvent Apple’s App Store payment policy.

Apple did not respond to Forbes request for comment.

The App Store commission has proven controversial in the past – that’s one of the reasons Epic Games cited in its antitrust lawsuit against Apple. In fact, Epic Games’ circumvention of the App Store payment system – and Apple’s commission – has sparked an ongoing legal battle.

Back in September, a U.S. District Court judge ruled that Apple was not a monopolist, but ordered the company to open some of its restrictions to developers communicating with its customers on the App Store. Apple filed a motion to postpone that decision, but it was denied.

Updated November 15, 12:00 PM East: In a statement to AppleInsider, Apple called the idea of ​​secretly buying advertisements a “gross mischaracterization.” The Cupertino-based company said it regularly discusses placing ads in the App Store with developers, many of whom express gratitude for the support.

Apple says it places ads to promote the products it distributes and has compared the practice to retailers displaying ads for the products they sell. The company pointed out that the ads were clearly marked as being from the App Store. It was said that the practice was in line with standard business models, and that they were given the right to do so in their legal contracts with developers.

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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