Ads related to betting apps and casino games have lasted less than 48 hours within the App Store due to criticism from developers who showed their discontent.
Apple announced this week that it would be possible promote apps in the store within the recommendations offered on the download and description pages of each app. The problem is that, quickly, all of them have been filled with recommendations for casino games, bookmakers or applications for adults.
Developers like Marco Arment, responsible for the popular Overcast podcast player, expressed their dissatisfaction because their work was related, albeit indirectly, to practices that morally failed.
The problem is that this function has been released without too much filter. Looking for a reading app or want to download Disney+ for your child? Here, I think you will like this betting app. In one of the cases seen on social networks, applications related to betting were even advertised on the product page of an app that, precisely, puts the focus on the opposite.
This is a situation that does not convince anyone. even less when Apple has usually been neat with privacy and user experience of your customers. It is one of its differential factors. And they have always defended it.
At the moment, Apple has stopped, which has not stopped, the announcements of this type of category. They will need to better limit in what context it is appropriate to serve ads to gambling apps, if any such context exists.
Why do they want to put ads now?
That Apple, which has nearly $50 billion in cash on hand, has to resort to placing ads inside its store may seem annoying to consumers and developers. But the service sector is one of the company’s most important businesses, and it will become increasingly relevant because the iPhone renewal cycle will get longer and longer, the sectors in which Apple is present are beginning to mature and the international economic situation does not invite us to be optimistic either in the medium or in the short term term. Increasing revenue from services is a way to make up for possible drops in other divisions or simply increase the company’s growth.
The App Store is also a very lucrative business. It is the only store for iPhone and iPad, and from any payment made in it or within the applications themselves, Apple takes a commission of between 15% and 30%. Something that companies like Spotify, Netflix or Epic Games consider abusive and a monopolistic practice.
Originally, the App Store was designed so that the iPhone experience would never be compromised by malicious spam or virus applications; It was to protect the consumer. Now, indirectly, that philosophy has made it the perfect business because it is the only gateway to one of the largest digital markets in the world: iPhone and iPad users. Apple controls who enters, who leaves, what each one must pay and, now, even the advertising within it.
The introduction of the publicity team was announced earlier this year, and started with related ads only within search fields. How much revenue has that translated into? hard to know What we do know is that Apple earned more than 68,000 million dollars thanks to the App Store, iCloud and other services during 2021. Division in which advertising revenue is also grouped.
Interestingly, Apple has started to get seriously into the advertising business shortly after seriously hurting some of its rivals with the do-not-track options implemented in iOS, macOS, and Safari, among others, which make it difficult for companies like Facebook. Coincidence does not imply causality, yes.
Advertising is a complicated garden; Apple has the challenge of entering it without being corrupted
Apple wants to enter the advertising market because it has all the resources to do so at its disposal and because it is also one of the possible paths to take to continue growing despite the pessimistic economic outlook. It has more than 1,800 million active devices, so the opportunity to increase revenue through the App Store cannot be underestimated. On Wall Street they are probably happy with this new line of business, but the limits of how and how far to expand it must be very strict if Apple does not want to damage with this new line of business what it has taken care of for years: the experience of its customers. .
Most likely what happened it was an oversight, not an act of bad faith. But it is important to remember that Apple is not one of those Asian manufacturers that sell at a loss – or at a small margin – and then try to make a business off of advertising. Nor is it a manufacturer of laptops that sells almost at cost price and includes pre-installed apps in exchange for commissions. Apple does have a notable profit margin on each of the products it sells – in part, because they tend to position themselves in higher ranges.
The consumer, when opting for an Apple product, not only pays to have a good camera or a good exterior design, he also does it because he values the experience that the product gives him. Refinement, attention to detail, privacy, simplicity, good design… these are some of the values that the brand has always defended. Reasons why many people choose one Apple product over another.
that philosophy is incompatible with oversights like the one we have seen with casino ads. And, luckily, Apple has reacted quickly to criticism. However, this neglect reflects the challenge of introducing ads without affecting those who have been the pillars of the company for years.
When Jobs floated the idea of advertising within Apple was under the premise that the ads were relevant and not annoying. It was their iAd service, which has been out of use since 2016. And yes, good advertising can be done. The consumer looking for a podcast app may like to see one promoted that better suits their preferences, but they will always feel annoyed or cheated when they see something irrelevant or directly against their values advertised.
Thinking in the short term, Excel in hand, watching the price and income rise, can ruin the reputation achieved for years in the future. Apple therefore You have to be very careful to maximize that possible income without transgressing the unwritten limits that consumers themselves put when using their products. Greed can break the sack.