Apple Defends Its Ads for Third-Party Apps, Says It Regularly Communicates With Developers and Has Been Running Them for Five Years

[MacRumors]

Following allegations that Apple secretively buys ads for subscription-based apps to collect more commission, Apple has now said that this is a mischaracterization and developers are fully aware of the ads it runs on their behalf.

Earlier today, we reported on an article by Forbes which claimed that the company "secretly" or "quietly" places ads for subscription-based apps without their consent to bolster its collection of commission on in-app purchases in "a form of ad arbitrage."

Apple has now clarified that it has placed ads to promote products it distributes for five years now, and these ads are clearly marked as being from the App Store.

Apple indicated that this is no different from retailers running ads for the products they sell, and is a very standard business model. Apple is granted conventional legal rights to advertise in this way in the agreements it has with developers.

Apple says that the allegation that it is "secretly" or "quietly" purchasing ads for developers without their knowledge or consent is an overt mischaracterization. On the contrary, the company says that it regularly engages in conversation with developers about the ads it places and many developers express their appreciation for this support.

Apple says that it is committed to providing developers with the resources they need to be successful on the App Store. These resources include compilers, testing and debugging tools, technical support, SDKs, libraries, APIs and more, but they also include advertising both inside and outside the App Store.

Apple's advertising for developers' apps, such as via email, online ads, and social media, achieved over 70 billion impressions in 2020. The company has also featured over 130,000 apps on the App Store and across various Apple channels, and is currently spending to support more than 100 apps across platforms such as Google, YouTube, Snapchat, Twitter, and TikTok.

Article Link: Apple Defends Its Ads for Third-Party Apps, Says It Regularly Communicates With Developers and Has Been Running Them for Five Years

 

[frenchcamp49er]

So this was all BS concocted by those wanting to harm Apple..

 

[jz0309]

Forbes “investigation” - their usual click n bait…

 

[SpringKid]

Can someone explain what the problem is here? ?

 

[B4U]

And I am constantly seeing the disturbing image of the scary faces from Snapchat on the AppStore front page...
Really wish there is a way to opt out from seeing that crap. 😓

 

[Infinite Vortex]

Hmmmm… so I wonder why any company would contract Apple to run a segment of their ad campaign(s) knowing they'll be giving away 30% of that. As always the truth is certainly between Apple's "they asked us to" and the other end of "we didn't ask Apple to do anything".

All I know is when ad campaigns the other way around run the logos of both companies are taking part in full view. Why wouldn't Apple want their association to be known with their "partners" ads?

 

[frenchcamp49er]

So if Apple makes more money by using the 30% fee would the developers also be making more money? So who’s really losing out?

 

[TheYayAreaLiving 🎗️]

No need to defend if Apple is doing the right thing? Correct?

No idea, what is going on here but it sounds like Apple is trying to save $$$

 

[SpringKid]

I always get emails from my grocery store with ads for products they carry. Maybe I'm just missing something here, but I really don't understand what the issue is here.

 

[warfed]

Can someone explain what the problem is here? ?

Apple advertising on behalf of their developers would generally be a positive thing. The problem is apple is bidding on the brand keywords. So for example is someone searches Spotify, apple would show up as the #1 result to "trick" people into clicking an ad that would increase their chance of getting revenue through the App Store rather than letting users click on the organic Spotify result so that Spotify could sign users up through their store.

 

[citysnaps]

Loved all the anti-Apple frothing on the story leading up to this.

 

[BWhaler]

This does seem like an overt mischaracterization. Apple is supporting developers and content makers and themselves by running ads that many cannot afford to run themselves. Verizon runs ads for the new iPhone, Best Buy runs ads for the latest Sony TV on Reddit.

Seriously, what am I missing. This seems like a hit piece drumming up clicks and drama.

 

[lazyrighteye]

Contrary to Forbe's click-bait, Apple = bad, piece, I think the actual issue/story here is Google's ad platform. That, to me, is the shady part.

 

[RalfTheDog]

I can't imagine the horror of having the worlds largest company spend money to promote my company. What's next, the tragedy of having them buy me a new house? (Just letting Apple know, I could use a new Lotus or three.)

 

[McKodiak]

I always get emails from my grocery store with ads for products they carry. Maybe I'm just missing something here, but I really don't understand what the issue is here.

People have a problem with Apple making money because they make tons of money. Jealousy is what you're probably missing here.

 

[WolfSnap]

Do people have no critical thinking skills any longer? This was *always* BS. Apple is selling apps. Apple wants to drive traffic to their store. Apple advertises the products they sell. It's *almost* like when Walmart advertises they have a PS5 for sale, or when BestBuy advertises the latest iPhone. They want to sell the items they have for sale.

This is a big bag of nothing.

 

[SpringKid]

People have a problem with Apple making money because they make tons of money. Jealousy is what you're probably missing here.

Isn't this the whole point of the existence of a company?

 

[senohpoxas88]

I'm not sure about anyone else, but I would be thrilled if Apple wanted to spend their advertising dollars to help grow my app.

It's them properly using the money they're making on their 30%, and a great example of good distribution.

 

[coolfactor]

Apple advertising on behalf of their developers would generally be a positive thing. The problem is apple is bidding on the brand keywords. So for example is someone searches Spotify, apple would show up as the #1 result to "trick" people into clicking an ad that would increase their chance of getting revenue through the App Store rather than letting users click on the organic Spotify result so that Spotify could sign users up through their store.

Is Apple breaking the law, or is bidding on key words a perfectly legit part of online advertising?

I'm sure any developer is more than welcome to request that Apple not advertise their app with a simple email or phone call.

 

[MauiPa]

So does Forbes now correct its article? Hard to be "secretive" when it has been known and communicated for 5 years. Probably just a whiney developer that wanted to make a big deal of something that is not a big deal. and why contact google? If you don't want your app advertised, shouldn't you contact the originator. There is so much hear that makes no sense

 

[Cosmosent]

Interesting that Apple felt compelled to respond so quickly.

Perhaps tied to their 2nd request to delay the Epic vs Apple court battle requirement, which takes affect on Dec 9th !

ALSO, it's NOT clear to me how macrumors.com got this response from Apple !

 

[bobenhaus]

I can't imagine the horror of having the worlds largest company spend money to promote my company. What's next, the tragedy of having them buy me a new house? (Just letting Apple know, I could use a new Lotus or three.)

Sorry MSFT is the largest company in the world by market cap.

 

[Mockletoy]

You know, telling me that you’re furious that you’re only getting 70-85% of a sum of money you wouldn’t have gotten at all without Apple’s ads on your behalf is not a great way to make me feel sorry for you.

“How dare you spend your money to make us both extra money without our permission!”

Wow. ?

 

[citysnaps]

Interesting that Apple felt compelled to respond so quickly.

Perhaps tied to their 2nd request to delay the Epic vs Apple court battle requirement, which takes affect on Dec 9th !

ALSO, it's NOT clear to me how macrumors.com got this response from Apple !

Oh, I dunno... perhaps it's tied to so many people getting frothed up and characterizing Apple as shady on a public forum, with widespread readership reaching Apple's customer base?

But what do I know...I'm just spitballing on that.

 

[Rogifan]

Didn’t take long for Apple to respond. Looks like Forbes got duped by bad info.