Apple purchases third-party app ads from Google to direct customers to the App Store and earn commission

As reported by Forbes magazine, Apple has been secretly buying ads for various popular applications available in the App Store on the Google Display Network for at least two years. At first glance, it might seem like a nice, helpful gesture. In reality, however, the developers of the mentioned applications lose money as a result.

According to information obtained by Forbes, Apple buys ads for popular applications and services that offer customers paid subscriptions and micropayments both in the App Store and outside it, such as HBO Max, Tinder, Bumble, Masterclass or Babbel. These ads, prepared in such a way that they cannot be linked to Apple at first glance, are to redirect potential customers to the store, so that they can make a payment through it, which will allow them to charge a commission. Sources cited by Forbes claim that getting a client this way costs Apple between $ 5 and $ 10, and that the annual commission earnings from that person can be as high as $ 54.

The creators of applications advertised in this way, as you can easily guess, are not thrilled with this state of affairs. Apple’s actions not only lower their subscription earnings, but also increase the cost of their own ad campaigns, which now have to compete for space with ads targeting the App Store. Some of them tried to contact Google about this, but the company replied that it did not intend to block this type of advertising. It turns out that they comply with the regulations of their advertising platform, which allows the advertiser to use third-party trademarks if he sells their products.

Source: Forbes


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