Friday, February 27, 2015

Google Puts Ads in Its App Store to Court Mobile App Marketers

According to an Adage report, Google is going to start exploring ways to monetize its mobile app store by displaying ads as part of the search results in the Google Play app store. The ad will be labeled in yellow. In many ways it is similar to how Google search currently functions. This is expected to yield another way for users to find relevant apps available through paid search. Says Jerry Dischler, Google’s VP-product management for AdWords.

Google hasn’t released any details around the pricing model of this new mobile app store search ads, whether ads will be priced based on per-click, per-install, per view, or other basis. Google’s move is a sign of the rising importance of app publishers as an important advertising segment. Makers of such “freemium” game apps as Candy Crush, Clash of Clans, like King Digital and Machine Zone, have all advertised in the Super Bowl this year.

The new mobile app search app model may be a new way for Google to recoup some of the costs it has spent promoting its app developers, as the company has driven hundreds of millions of downloads through Google-sold ads promoting the apps. In the past 12 months, Google has paid $7B to developers through app store sales.

Google is not the only online ad seller to monetize the app search customer base. Facebook, Twitter, and Yahoo all offer their own ad products to increase downloads for app developers. To help it consolidate its product, Google recently acquired Toro, a company that specialized in Facebook ads.

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