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Digital marketers are not much satisfied with the performance of recently launched Apple ad format

In today’s update, Apple came up with the new ad format on the App store to assist advertisers promote their product. But according to the Insider, marketers claimed that the new format is not what they expect as it not only lacks in performance but also charge a lot of amount.

Prior to this update, Apple changed the privacy policy of the App store that requires app developers to obtain users approval in order to keep up with them while browsing websites or visiting apps. After which, Apple search-tab strategies came out on 5th of May.

Previously, the charges were possibly low to monitor the activities of users which made it difficult for the companies to approach the right audience and keep the track of success rates. Just because of the changes made by Apple in the privacy policy of App store, the advertisement will lose its effectiveness hence marketers will have to focus on other advertising platforms.

In response to the advertisers, Apple launch modified ad format which according to them will help the advisers to display their product in front of thousands of people who get to search on Search-tab. This latest ad template works by appearing on the app store when user entered something in the search bar. The cost will be charged on each tap or on the basis of per thousand appearance.

As informed by mobile experts, the CPM charging model cost much more than it was assumed. The imposed CPM model is not only charging money in bulk but it is also far behind a good performance as it haven’t drawn any considerable amount of audience to download the apps.

As per the research conducted by SplitMetrics, the calculated CPM was around $31.10 during the initial days of the updated ad format. However, after analyzing 5 million impressions and 70 marketers, it was concluded that everyday facilities displaying ads seemed to have high CPMs of $49.90. Whereas, the ads in the human wellness category charged $17.20.

Ad developers raised their voice by stating that such ad format would increase the cost of installing an app. Thomas-Petit found out that downloading charges were lower before the launch of such ad format. He further stated that very less number of people are being able to download the apps through search-tab facility.

Ad developers are now able to aim search-tab ads via different factors including geographical location, product being promoted, age range, recurring customers, and new customers. Redbox mobile, an industry responsible for mobile ads tried this new ad format and discovered the same that CPM was way more than expected and click-on charges for these ads were sky-high. Fair enough, this latest ad template is still in its initial phases and it will get improvements as the time passes by. Final verdicts cannot be given right now as advertisers will also observe its impacts on their reach.









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