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Apple buying Google ads for high-value subscription apps

forbes.com

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Re: Apple buying Google ads for high-value subscription apps

#51

Post by jefftk »

offtotheraces wrote: post #45
Brian_K_White wrote: post #24

It's actually an interesting question how nefarious or harmful this actually is. We obviously know why Apple is doing it and why the apps in question don't like it. But a couple things occurred to me: You could view this like Amazon giving away your book or android app in a promotion. As I understand it, they still pay the author as if it were a sale, so the author seemingly has nothong to complain about. Even that s…

I run a big portfolio of mobile apps, and the discussion around this is misguided. It's not about Apple taking 30% of the revenue generated from these ads. It's about Apple driving up the user acquisition costs for these companies so much so that it become entirely uneconomical for them to buy ads that direct users to their own websites, and instead the campaigns that target users to download the app - which results…

Sorry, where in the article do you see that Apple is running these ads in a way that loses them money?

Re: Apple buying Google ads for high-value subscription apps

#52

Post by makeitdouble »

Brian_K_White wrote: post #24

It's actually an interesting question how nefarious or harmful this actually is. We obviously know why Apple is doing it and why the apps in question don't like it. But a couple things occurred to me: You could view this like Amazon giving away your book or android app in a promotion. As I understand it, they still pay the author as if it were a sale, so the author seemingly has nothong to complain about. Even that s…

On the Amazon part, the harm is caused by your book losing value during the Amazon give away and a while after.

For instance any other seller of your book is affected, so you potentially lose distribution channels.

Customers also get attracted to Amazon, but your book is only seen as a bait, and when it goes back at the regular price it will be less desirable (some will have negative feelings of having missed the sale, some will keep seeing your book as something only worth giving away).

If your book has a short shelf life and you didn’t expect much of it, or if it’s a stepping stone into a series and you could have given it away anyway, Amazon footing the bill is a boon. Otherwise it probably shortens the life of your book.

Re: Apple buying Google ads for high-value subscription apps

#53

Post by ChildOfChaos »

indymike wrote: post #19

This is monopolistic behavior all the way. Let's leverage our cash to make it more expensive to get customers, and force app publishers to sell their product through our channel. This needs to be stopped. Now.

How? Apple is spending it’s money to help promote apps on it’s service, i feel like people attack apple whatever they do.

But doesn’t this help defend a 30% app fee, when apple is also paying marketing costs to help the app get more customers through it’s service?

Re: Apple buying Google ads for high-value subscription apps

#54

Post by pfortuny »

FridayoLeary wrote: post #5
pfortuny wrote: post #2

> Apple is trying maximize the money they’re making … And that is the problem with our modern companies. The only morals is making money. What a pitiful excuse.

can you explain to me this attitude, which i see a lot? Obviously the entire reason for a companys' existence is to make money why should we expect anything else? Also this is true for every company in history. Of course we must demand companies meet minimum moral standards such as not using slaves (which would be unthinkable today in 2021 cough ) but those must be imposed on them by law. This is a genuine question p…

“Making money” is not a humane endeavour. Just that.

Helping people, raising a family, being virtuous…

“Making money” is just so void of content.

Companies either exist for human beings or are just despicable.

But this is just my opinion obviously.

Re: Apple buying Google ads for high-value subscription apps

#55

Post by pfortuny »

betterunix2 wrote: post #29
tauwauwau wrote: post #17

Earlier quoted context omitted.

Money corrupts everything, it replaces the original motivation. If companies didn't have to maximize x% of the profit made on the investor's money per quarter/year, they will be able to focus on product/service, customer and employees more. It may result in less profit but it will be better for the society as a whole. We can see this happening when some company is acquired solely for sucking money out of it. Sometime…

"Money corrupts everything" BS. One of the only things Ayn Rand got right was her view of money: it is one of the greatest forces for good humans have ever invented. Money allows us to settle our disputes without violence; money is what enables peaceful trade; money is how we moved beyond palace economies. Sure, money can corrupt some things, but on the whole money has likely saved many lives and in all likelihood th…

Like lust, laziness, envy, pride, and wrath… Avarice is one of the primary wrong impulses. Yes.

What have we done with love, mercy…

Re: Apple buying Google ads for high-value subscription apps

#57

Post by makeitdouble »

renewiltord wrote: post #50
offtotheraces wrote: post #45

Earlier quoted context omitted.

I run a big portfolio of mobile apps, and the discussion around this is misguided. It's not about Apple taking 30% of the revenue generated from these ads. It's about Apple driving up the user acquisition costs for these companies so much so that it become entirely uneconomical for them to buy ads that direct users to their own websites, and instead the campaigns that target users to download the app - which results…

Unlike predatory pricing, you can’t really price people out of this permanently. Tinder in this example is still getting the customer. Google is still getting paid. So the moment Apple stops buying the ads, they’re both ready to participate again. So how is it a long term play?

> how long

I think we can assume Apple is getting enough out of it to run this scheme permanently.

Unlike Tinder, they can get extra revenue from the user staying in the ecosystem (active credit card registered for IAP), getting used to Apple’s service, and keep buying Apple devices. Their LTV of the user is not just the 30% cut.

Re: Apple buying Google ads for high-value subscription apps

#59

Post by TheJoeMan »

rkk3 wrote: post #48

Ruthless move by Apple - but brands like HBO should just take Netflix's queue and not allow in-app purchases. I was actually surprised to learn some of the app native brands mentioned (Tinder, Bumble) even had a way to sign-up for a subscription outside of the app. Seems like they would actually benefit from apple placing adds.

Which is why I see this will be a non-issue if on Dec 9th the anti-steering goes away. Then Apple places ad->user downloads->app says “hey it’s cheaper on tinder’s website”->user decides for themselves

Re: Apple buying Google ads for high-value subscription apps

#60

Post by mdoms »

Hamuko wrote: post #23
FridayoLeary wrote: post #3

This isn't terrible since it's possible that many apps providers can't afford the ads. But i think it's unacceptable unless the app owner is given a choice, and a clear cut choice with obvious opt in and opt out buttons. Also, it wouldn't hurt to make it clear to the consumer that Apple is paying for the ad.

How many of the ads Apple buys are for small developers who couldn't afford it and how many are for massive companies that could absolutely afford it?

This is covered in the article. It's high value apps like Tinder and HBO Max.
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