Digital Advertising

Apple introduces ads within App Store as it looks to shake up its revenue model

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By Tony Connelly | Sports Marketing Reporter

October 6, 2016 | 3 min read

Apple has begun displaying search ads in the US iOS App Store following a successful beta trial.

Earlier this year the company started serving the ads to people testing versions of iOS 10 and now they will be rolled out to all users.

The paid ads are part of Apple’s strategy to shake up its revenue model for apps and will appear above the search banner but only when they are related to a user’s search query. This means when someone searches “to do list” in the App Store, they may see an ad for a task management app first.

App Store

The company started serving the ads to people testing iOS 10

Apple has stated that the move is intended to ultimately lead to more downloads of apps from smaller developers.

This was made clear earlier this year when the company’s senior vice president of worldwide marketing, Phil Schiller, said it wanted to be "fair to developers, and fair for indie developers, too”.

To encourage early uptake of the new ad model, Apple has offered eligible developers $100 in credit to help cover the cost of their first search ad campaigns.

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