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BizReport : Advertising archives : January 10, 2017

Apple's search ad performance impressive

Apple's app store search ads perform well with half of those who click on an ad going on to download the app.

by Helen Leggatt

As more and more apps enter Apple's ecosystem, it has become much harder for individual apps to stand out with more than 2 million apps to compete with. In fact, research has shown that most mobile app usage occurs in just a handful of apps.

Furthermore, in order to maintain visibility, developers must ensure they continue to be featured organically if they are not among the top downloads.

However, Apple introduced search ads in October last year to enable developers to achieve more visibility for their apps. The ads are sold via a self-service platform which, says Apple, includes a tool called 'search match' that provides the best keywords for developers and brands to buy ads against. Apple's format prioritizes ads based on app category and enables brands and developers to get their app listed at the top of search results.

According to Apple, the search ads are performing well. Fifty percent of consumers who click on the ads go on to download the app. Based on an average cost of 50 cents per tap, that means the average cost per install to developers and brands is $1.

So far, the biggest spends on search ads have come from the categories of gaming, travel, and entertainment.

Tags: advertising, apps, mobile

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