Commentary

Is Apple Adding Paid Search To App Store?

Ever since Apple announced plans to shutter its iAd App network, I’m sure you’ve been wondering how it plans to replace that lost revenue.

As one possible solution, Apple is reportedly open to the idea of charging developers to have their apps more prominently displayed in its App Store.

That’s right, Apple is considering paid search, as sources tell Bloomberg Technology.

Just as  Google’s been doing for years, the company that Steve Jobs built might charge app makers to have their products displayed at the top of App Store search results.

And, this is no small endeavor. To bring the idea to fruition, Apple reportedly has 100 or so staffers on the job, including top engineers from its iAd ad group. Indeed, the secret initiative is being led by Apple VP and iAd head Todd Teresi.

This isn’t Apple’s only money-making scheme, for sure. Last month, news broke that the company is readying support for ads that look like normal articles in its News app. Clearly outlined, a “native banner” unit is among seven new ad formats soon to be supported by the News app.

Of course, Apple CEO Tim Cook never thought much of iAd. Back in 2014, he called it a “very small” part of the company’s business. Earlier this year, eMarketer estimated that the program amounted to about 5% of the U.S. mobile display ad business.

That sets a low bar for Apple’s would-be paid-search business -- and low expectations are likely what the company is hoping for.

1 comment about "Is Apple Adding Paid Search To App Store?".
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  1. Jim Nico from The Social Network Station®, April 16, 2016 at 7:29 a.m.

    Thank you Gavin for this excellent update and your writing is excellent. Jim Nico, The Social Network Station.

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