Apple quietly bought Google search ads for a few third-party applications, causing dissatisfaction among developers


Tencent technology news on November 13, according to people familiar with the matter, apple is quietly buying Google search advertising for a few prominent third-party applications in the app store. Some developers are worried that Apple’s practice will reduce their revenue.
A number of third-party application developers complained to the media that Apple was “secretly” buying Google ads, which led users directly to the application list of the app store rather than the developer’s website. A source said: “apple is trying to maximize revenue through in app payment. Apple has found that if users are guided to the app store to buy apps instead of through network traffic, they can make more money from developers.”
It is reported that Apple quietly bought Google search advertising for third-party applications such as education application Masterclass, streaming video application HBO, language learning application babble, dating application tinder and bundle. Although advertisements have almost the same tracking parameters, the advertisements themselves do not disclose advertisers, which may indicate that an entity is buying them.
It is worth noting that the media can not confirm that apple is indeed the buyer of advertising space. This information comes from developers. This may be based on the fact that the application developer does not buy advertisements, and the advertisements directly enter the link of the app store. Some developers told the media that these advertisements may damage their business because Apple has to draw 15% to 30% of the sales from the app store and in app payment, which is the so-called “Apple tax”.
The average user who clicks on the advertisement may not know that the developer has not put in the advertisement. If new users register through the app store instead of the app website, the subscription fee charged by the app developer will be drawn into 15% to 30% by apple. “Third party application developers gain growth based on the value of customers. If the value of customers decreases by 30%, the profits of application developers will be lost,” said a source who chose anonymity for fear of retaliation.
In addition, advertising space makes advertising more expensive for actual developers of applications. This is because when multiple parties bid for the same advertising space, the price will rise. Some marketers told the media that many brands represented by the advertising space had actively tried to avoid the payment policy of Apple App Store in the past. So far, Apple has not commented on this report.
The bonus of Apple’s app store has proved controversial in the past – which is one of the reasons why game developer Epic Games launched an antitrust lawsuit against apple. In fact, it was Epic Games that bypassed the payment system of Apple’s app store and Apple’s bonus that triggered the ongoing legal war.
In September, a judge of a U.S. District Court ruled that Apple was not a monopoly, but ordered the company to open some restrictions on developers’ communication with customers in the app store. Apple applied to suspend the implementation of these decisions, but was rejected. (compiled by Tencent technology / Wuji)