Apple is secretly buying ads for its apps, developers complain

Major developers have accused Apple of secretly buying advertisements for their applications. While this may sound like a strange complaint, they say the company’s motive is greed, and the effect is that it costs them money.

They say Apple costs them millions of dollars…

Forbes explains that Apple’s intention is to direct traffic directly to the App Store, not to the developer’s own website, so that users end up buying subscriptions as an in-app purchase – giving Apple a 15% or 30% reduction.

Apple is secretly buying Google ads for high-value apps to raise potentially millions of dollars in subscription revenue, several app publishers have told me. Apple puts ads without the consent of app developers, and Google won’t delete them, they say […]

“Apple is trying to maximize the money it earns by encouraging in-app purchases that people buy through the Apple Store,” one source told me, who asked not to be named for fear of retaliation.

“Apple has realized that they can make more money from these developers if they make people in the App Store buy there compared to the web stream.”

The secondary effect is that as Apple creates competition for ads on sites advertised by developers themselves, the Cupertino-based company increases the price of those ads.

The apps said to be affected are Babbel, Bumble, HBO, Masterclass, Plenty of Fish and Tinder – all apps with relatively expensive subscription options. This makes it a very profitable exercise for Apple.

Some subscriptions are worth hundreds of dollars a year. These can be for training, education, fitness or dating applications. Apple’s cost to run an ad can be $ 5-10 for each successful registration, and revenue can easily be $ 50 or more.

Developers say their cost is not just financial.

When people buy access to the service through a subscription in the iOS app, they are essentially Apple customers. For privacy reasons, Apple does not provide much information about them to applications or companies that run applications. This means that it is difficult to provide customer support, solve problems, or solve any problems.

Apple did not respond to a request for comment at the time of writing, but such anti-competitive behavior is likely to spur even more antitrust control.

Photo: Pickawood / Unsplash

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Naveen Kumar

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

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