Apple has launched a new way for app developers to acquire new users. The pay-per-install ad product is called Search Ads Basic and is aimed at predominantly smaller app developers, running alongside Search Ads Advanced (renamed from Search Ads).
The ads appear at the top of the App Store search results field under a set of keywords and developers only pay once a consumer clicks on them.
Search Ads were originally launched in 2016, but have already made a big impact on the iOS App Store by reaching potential audiences for apps based on demographics.
In the case of Search Ads Basic, developers are now only paying for the campaign when a consumer actually installs the app. That’s a much better deal, although it remains to be seen what visibility will be like.
To set up a Search Ads Basic campaign is easy with only a few parameters having to be set, including the budget a developer wishes to spend and the amount they want to pay per install.
Search Ads Basic has a budget limit of $5,000 which makes it a good option for smaller app developers. Those wishing to spend more should turn to Search Ads Advanced.
The benefit with Apple’s Search Ads is of course that the company has direct access to App Store data and ads will be placed across the App Store only.
In addition, Apple includes chart ranking with the ads, which means that Apple’s chart algorithm does not discriminate against non-organic installs. The company generally considers all installs coming from Search Ads as “high quality”.
According to Apple’s own data, Search Ads conversion rates were around 50% for the year with cost per acquisition below $1.50.