Apple claps back at 'secret' app ad purchase claims, says supports more than 100 apps

AppleInsider

Apple has responded to claims that it "secretly" buys ads for third-party apps on Google and other platforms, allegedly driving users away from developer websites and to the App Store where it can collect commission fees.

Over the weekend, Forbes published a report citing multiple app developers who claim that Apple attempts to maximize profits by steering potential iOS app consumers away from developer websites and toward the App Store, where it can generate revenue from in-app purchase fees. Further, Apple supposedly purchases the spots without developer consent.

"Apple is trying maximize the money they're making by driving in-app purchases that people buy through the Apple Store," an unnamed source told Forbes. "Apple has figured out that they can make more money off these developers if they push people to the App Store to purchase there versus a web flow."

Apple clarified the situation on Monday, telling AppleInsider that allegations of the company "secretly" or "quietly" -- words used in the report -- buying ads without app makers' knowledge is a mischaracterization. The company is in regular communication with developers about the advertisements and said many are appreciative of the support.

The initiative, which has been running for at least five years, currently sees Apple purchasing ads in support of more than 100 apps across Google, YouTube, Snapchat, Twitter and TikTok in a practice the tech giant says is common among retailers. Each ad is clearly marked as being from the App Store, Apple says.

Some developers opposed to the practice claim Apple's placements are hurting business.

"You're building your growth based on what you think a customer is worth, and if a customer is worth 30% less, your margin is gone," one person said, according to Forbes. Another believes the customer experience suffers when purchasing through the App Store, saying, "When you buy with the developer, they have a relationship with you ... when you buy from Apple: sorry, you're Apple's customer, not ours, and if you have a problem with a subscription we can't really help them."

For its part, Apple says it provides an assortment of resources to help developers succeed on the App Store, including technological assets and advertising. On the latter, the company notes its App Store promotions program garnered more than 70 billion impressions through email, social media and advertising in 2020.

Read on AppleInsider

22july2013

AppleInsider said:

Some developers opposed to the practice claim Apple's placements are hurting business.
... the customer experience suffers when purchasing through the App Store, saying, "When you buy with the developer, they have a relationship with you ... when you buy from Apple: sorry, you're Apple's customer, not ours, and if you have a problem with a subscription we can't really help them."
Read on AppleInsider

Why would developers think, in their wildest imaginations, that I would trust a small developer when I can't trust big developers with my personal information, like FaceBook? How stupid can they be? If they want my money they can go through Apple.

crowley

It wouldn't be hard for Apple to allow developers to opt out of Apple's free advertising.  If that's really what they want, no problem.

hedware

Forbes is now so right wing it can’t report the truth any more. 

anilu_777

So Apple is advertising and bringing more users to apps whose developers resent it because they buy the app through the App Store which is NORMAL buyer behaviour!! What am I missing here?!

foad

Some of the language of the quotes would lead me to believe that the stories are meant to influence policymakers. I wouldn’t be surprised if lobbyists for the coalition funded by Epic and Match helped get the stories run. 

mcdave

Surely, because developers are now able to ‘steer’ Apple’s customers away to their stores, then Apple are able to reciprocate? Or that would be anti-steering.
Lets hope those developers also offer in-app purchases on the App Store too, otherwise that would be monopoly control.

edited November 2021

mcdave

“when you buy from Apple: sorry, you're Apple's customer, not ours”
So they admit that we’re Apple’s customers. That would mean it’s they who are poaching customers, not Apple.

mcdave

crowley said:

It wouldn't be hard for Apple to allow developers to opt out of Apple's free advertising.  If that's really what they want, no problem.

Why would Apple not want to drive App Store revenue? & those riding their coattails get to make money too!

mcdave

Anilu_777 said:

So Apple is advertising and bringing more users to apps whose developers resent it because they buy the app through the App Store which is NORMAL buyer behaviour!! What am I missing here?!

Clearly you’re missing the self-entitled freakishness that’s sweeping Western society in general.

crowley

mcdave said:

crowley said:

It wouldn't be hard for Apple to allow developers to opt out of Apple's free advertising.  If that's really what they want, no problem.

Why would Apple not want to drive App Store revenue? & those riding their coattails get to make money too!

I don't understand the question.  Apple would continue to advertise, most developers likely wouldn't use the opt out, and it would address the issue that this minority have.  Why would Apple not want to address complaints in ways that satisfy everyone?

davidw

"Apple is trying maximize the money they're making by driving in-app purchases that people buy through the Apple Store," an unnamed source told Forbes. "Apple has figured out that they can make more money off these developers if they push people to the App Store to purchase there versus a web flow."


Apple is not making more money when they encourage iOS app purchasers to pay using iTunes and the Apple App Store, rather than on the developer own website. Apple is not making any money when payment is done through the developer website. And Apple is only making the money that they suppose to be making and deserve to make from developers that makes money with apps that was created by using Apple IP and rely on Apple IP to work, that is on the iDevices of Apple customers.  And the developers agreed to this when they developed their apps for the Apple App Store. The last time I checked, Apple IP is not in the public domain. 

This statement had to have been made by a truly clueless and is like saying that .........  brick and mortar retailers has figured out that they can make more money off their shoppers if they encourage them to pay for their items, rather than shoplift. It's no wonder that the one making this statement, wants to remain unnamed.  But it does sound like something Sweeney would say.  

edited November 2021

alex_v

"You're building your growth based on what you think a customer is worth, and if a customer is worth 30% less, your margin is gone," one person said, according to Forbes.

Add 30% to the retail price, and voilá your margin is back. 

dave cummings

"Just call me Swim Teeney...no, that won't work, Just call me Tim, I mean Jim Sweeney...just say I'm an unnamed source" 

beats

It’s as if these morons think Apple doesn’t own the App Store or iPhone/iPad.

wonkothesane

crowley said:

It wouldn't be hard for Apple to allow developers to opt out of Apple's free advertising.  If that's really what they want, no problem.

First, I wanted to answer something along the lines of “why should Apple do so? I don’t think they need permission to advertise product as on their store”. But on second thought I felt “that is probably the easiest solution. No fuss. Don’t appreciate? Great, click here and you’re set.”. Or, in other words: Never argue with an idiot. it is like playing chess with a dove. It walks around, kicking over your pieces, never listens and in the end shifts on your chess board.
And even if there should be rightful objections, then just opt out.

chadbag

I am not getting what this is even about.  Is Apple buying advertising that advertises in-spp purchases or other pay externally features and encouraging people to only buy those through the app store or are they just buying advertising that highlights a specific app?   Of course they are going to send them to the app store.  The only supported place to get apps for iOS.

Not sure how these complaining developers expect to make money if people don't get the app in the first place.  

I'd like to see examples of these Apple bought ads. 

verne arase

Hedware said:

Forbes is now so right wing it can’t report the truth any more. 

Yeah, what the heck happened with that?

ai_lias

Apple didn't address the problem in their statement: sure there are some developers who don't mind that, but there are some who do not want it, and apparently Apple doesn't give them a choice or notification. So the solution here is to give them the choice to opt out of these ad campaigns. Don't see the problem with that.

stoneyg

So by this logic Walmart shouldn't be able to advertise for a product they sell in stores when it's also available on the manufacturer's website, because they're making money that the manufacturer could have instead.

I seriously don't get this argument from Epic, et al.

jeff fields

Hedware said:

Forbes is now so right wing it can’t report the truth any more. 

In point of fact, Forbes has never been very good at reporting on tech. It's not just political bias; they lack fundamental cluefulness and they obviously lack a good tech editor.