The main rational behind this, aside from making money from the program, is the app discovery. Google has had search ads in the Play store for over a year.
Search Ads will be delineated with a blue background. Apple is going to be generating the ad images and copy from app metadata supplied by the developer or publisher, so technically, there isn’t going to be any ad copy. It looks like there will be only one on ad per search.
Developers will be able to set a max daily budget, as well as an overall campaign budget. These Search Ads will be using the familiar “Second price auction” to set winning bid prices. According to Apple, relevance and bid price will determine which ads show. Developers will pay a “cost per tap” basis.
Search Ads are going to allow for bidding on the iPhone or iPad individually. There’s even a keyword suggestion tool, which includes popularity indicators and negative keyword capabilities. The audience targeting features included in Apple Search Ads are: customer type, gender, age and location. Naturally, there will be analytics.
According to comScore, although though app store search is the dominant way that apps are discovered, other discovery channels are now growing in relative importance.
comScore said that about 50 percent of smartphone owners don’t download any new apps in a given month, while the average user downloads two apps a month.
Search Ads are going live in the App Store on October 5. Developers will receive a $100 credit for the first campaign.