Apple is expanding its advertising business and adding two new ad slots to the App Store. There are currently two ad slots in the App Store: one in the main Search tab and one in the search results. Two new App Store ads announced today will advertise on the App Store’s “Today” home page as well as individual app pages.
Ads on the App Store are on the rise
New ad placements in the App Store will allow developers to place ads outside of the Search tab and search results. First of all, there is a new ad slot on the main Today page in the App Store. This location, as seen in the image above, is in the second slot on the Today page.
Apple notes that the rest of the Today tab will continue to focus on curation and discovery – the ad slot will be clearly marked as an ad using the same blue banner/background as the search ad. Obviously, this will be a highly lucrative ad space for both Apple and developers, as it sits right on the page that users see when they first open the App Store.
The second new ad placement goes directly to the product pages themselves. This means developers will now be able to advertise on product pages for other apps. This place is at the very bottom of the product page, under the banner section, which shows other apps from this developer.
Developers will not be able to target a specific app when applying to advertise on a product page. For example, Twitter won’t be able to target Tweetbot. The ads, however, will be relevant to each of the product pages. This means that you may (and likely will) see direct competitor ads on app pages.
In a statement, Apple explained that these new ad placements give developers an additional way to target and reach new customers while adhering to Apple’s privacy commitments:
Apple Search Ads provides developers of all sizes with opportunities to grow their business. Like our other ad offerings, these new ad placements are built on the same foundation—they will only contain content from App Store approved app pages and will adhere to the same strict privacy standards.
Ron Schneidermann, CEO of the popular app AllTrails, said in a statement:
Apple Search Ads has helped us reach new, more engaged customers across multiple markets. We rely on Apple Search Ads for cost-effective customer acquisition, a critical component of our growth strategy. As they become available, we plan to invest in new placements to reach even more customers on the App Store and continue to drive our business growth.
The new ad slots will soon start showing up in the App Store for testing, but there are no details yet on when exactly that will happen.
App Store Advertising Privacy
Apple makes it easy for users to opt out of interest-based ads when they first open one of its apps. Apple currently displays ads in the News app, the App Store, and the Stocks app.
In fact, Apple said earlier this year that roughly 78% of iOS 15 users are opting out of personalized ads. According to Apple, this does not affect conversions or performance. The company explained that advertisers received a 62.1% conversion rate from customers who opted for personalized ads in the first quarter, compared to a 62.5% conversation rate among users who opted out.
The new ad slots are protected by the same privacy protections as other native Apple ads. This does not include targeting individuals or small groups, but only segments of at least 5,000 users. The Company also does not create individual user profiles in its applications and services. Instead, it uses random IDs.
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