Apple buys advertising for iOS apps to compensate for Epic’s court ruling

Manzana Is buying, without making hardly any noise, advertising on Google of the apps that have the most value, especially in subscriptions, to direct those who click on them to your App Store and thus increase the money you get for your subscriptions. In this way, the company seeks to compensate for the blow it took with the judgment of the trial against Epic. In it, the judge in charge of the case ruled that Apple cannot prevent developers from encouraging their users to buy products and subscriptions from platforms other than the Apple store. That will cause Apple to reduce its revenue from commissions from sales through its store, which can be as high as 30%. And now it seeks to compensate without notifying the developers of what it does.

Therefore, your purchase of ads is carried out without the consent of the developers of the promoted apps. Also, Google does not remove the ads, according to the developers. Among the apps that are being affected, according to Forbes, are Tinder, HBO or the language learning service Babbel. The ads do not reveal that they are from Apple, and appear to be advertising from the developers of the applications themselves.

The only clue to these applications is that they have similar tracking links, with virtually identical parameters. This indicates that they are likely being published by a single agency. They all take those who click on it to the page of the application in question in the company’s official App Store. Once there, it is possible that the purchases made by the Internet user who has reached the App Store through the advertisement are carried out through the official Apple store, with which the company would keep up to 30% of the amount paid.

This measure seeks to prevent that when companies that have paid apps or paid subscription services offer subscriptions or sell their apps on their websites or alternative services, users go to them when they do a search. And despite what it may seem, Apple announcing apps is not the best for its developers, even if it brings them more customers and some income. Because what you are looking for is to keep a part of the cake that, according to the sentence of the Epic trial against Apple, the developers can stay complete.

According to one of these companies, this practice «it’s hurting developers’ business. You base your growth on what you think a customer is worth, and if a customer is worth 30% less, you run out of margins«. Some subscriptions are worth hundreds of euros and dollars a year, especially those for training, education or dating services. Apple can be spent between 5 and 10 dollars in advertising for each subscription you get through this system, and with this you can get some income of $ 50 and even more per subscription. And the client does not know.

In addition, this practice has other costs in addition to the economic one. When Internet users buy access to a service through an iOS app, they basically become Apple customers. For privacy reasons, Apple does not provide much data about these customers to the apps and companies that launch these applications. This makes it more difficult to provide customer service or troubleshoot problems, leading to a much worse customer experience. And, of course, two parties taking income from a subscription leads to a price hike.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *