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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

#91

Post by treis »

offtotheraces wrote: post #63
jefftk wrote: post #51

Earlier quoted context omitted.

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

The article doesn't have to say it because it's just the way that google ads work. It's a bidding-based system, so at the most basic level the person who bids the most wins the auction and their ad is shown. If the LTV of a customer is $100, and there's a 3% processing fee for web transactions, then Tinder will bid up to $97 to acquire a customer. So Apple has to pay at least that much to acquire that same customer i…

Both ads are shown though with Apple in the 2nd slot. So HBO is bidding more and I doubt Apple is going into negative margins.

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

#92

Post by lordnacho »

I wonder if this is similar to Uber Eats or Deliveroo getting people to sign up with the help of some particular restaurant's menu, where that restaurant might have its own ordering site. If people get used to using the aggregator the restaurant loses out on the cut.

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

#93

Post by fzil »

threeseed wrote: post #85
spzb wrote: post #30

Surely if 30% fee wipes out your profit margin, you don’t offer in-app subscriptions. Netflix doesn’t.

Would add that it's 15% for App Developers earning < $1 million a year.

yes, but they aren't running these apps for small apps like that. The ads according to TFA, are for giants like Tinder, HBO Max etc. The little guy making < $1M would obviously appreciate the free publicity.

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

#95

Post by [deleted] »

threeseed wrote: post #83
sam0x17 wrote: post #71

Lovely corporate ethics. I posted this in our company slack room as an example of how not to act for bizdev Google benefits too much from this sort of arrangement to have any incentive to stop it, even though these are unauthorized advertisements that are specifically against Google's AdWords TOS (side note, I wonder if there is a legal avenue to follow when a vendor doesn't follow their own TOS? An interesting thoug…

a) It is not against AdWords TOS provided you have permission to use their trademarked terms. Which Apple has since in the Developer agreement [1] they have been assigned permissions to use logos, trademarked terms etc in marketing material. b) Google is incentivised to tackle abuse within their system. It's ridiculous and baseless to say otherwise. Lack of integrity in an ad marketplace very easily can translate to…

[deleted]

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

#96

Post by gpm »

threeseed wrote: post #83
sam0x17 wrote: post #71

Lovely corporate ethics. I posted this in our company slack room as an example of how not to act for bizdev Google benefits too much from this sort of arrangement to have any incentive to stop it, even though these are unauthorized advertisements that are specifically against Google's AdWords TOS (side note, I wonder if there is a legal avenue to follow when a vendor doesn't follow their own TOS? An interesting thoug…

a) It is not against AdWords TOS provided you have permission to use their trademarked terms. Which Apple has since in the Developer agreement [1] they have been assigned permissions to use logos, trademarked terms etc in marketing material. b) Google is incentivised to tackle abuse within their system. It's ridiculous and baseless to say otherwise. Lack of integrity in an ad marketplace very easily can translate to…

a, b) yes

c) regulations and laws trump contracts, not the other way around.

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

#97

Post by ClumsyPilot »

noirbot wrote: post #69
ClumsyPilot wrote: post #39

Earlier quoted context omitted.

"Money allows us to settle our disputes without violence" What? Money is the cause of like70% of all violence

Sure, but if it's 70% of the remaining smaller pie of violence, that's still an improvement. If money wasn't a thing, you wouldn't be like "Relationships cause 70% of violence. Relationships are the root of all evil"

"70% of the remaining smaller pie of violence, that's still an improvement."

What leads you to believe that the pie is smaller than it was without money? I have never seen any kind of statistics like "hunter gatherers had more wars". How you you even formulate the null hypothesis for this?

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

#98

Post by mthoms »

ChildOfChaos wrote: post #53
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?

Apple are bidding on exact (trademarked) product name matches (eg “HBO Max” and “Tinder”).

You might have an argument if Apple was bidding on more general keywords like “online dating” to send traffic to the App Store’s Tinder page.

Apple are trying to intercept purchases and/or raise ad costs for the mentioned companies.

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

#99

Post by offtotheraces »

treis wrote: post #91
offtotheraces wrote: post #63

Earlier quoted context omitted.

The article doesn't have to say it because it's just the way that google ads work. It's a bidding-based system, so at the most basic level the person who bids the most wins the auction and their ad is shown. If the LTV of a customer is $100, and there's a 3% processing fee for web transactions, then Tinder will bid up to $97 to acquire a customer. So Apple has to pay at least that much to acquire that same customer i…

Both ads are shown though with Apple in the 2nd slot. So HBO is bidding more and I doubt Apple is going into negative margins.

Again, by definition theyre going into negative margins because they can only ever get 30% of the revenues; how could they compete with the developer who gets 70% of the revenues without going negative?

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

#100

Post by treis »

offtotheraces wrote: post #99
treis wrote: post #91

Earlier quoted context omitted.

Both ads are shown though with Apple in the 2nd slot. So HBO is bidding more and I doubt Apple is going into negative margins.

Again, by definition theyre going into negative margins because they can only ever get 30% of the revenues; how could they compete with the developer who gets 70% of the revenues without going negative?

They're not beating the developer. They're getting the #2 slot.
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