Apple Reveals Excellent Conversion Rates for App Store Ads Despite Majority Users Opting Out of Personalized Ads

Apple’s privacy policy that allowed users to opt out of third party tracking by apps by default shook the entire social media industry up because of the fact that this is the sort of thing that could potentially end up preventing them from getting their hands on data they might need to make their ads effective. However, some players in the industry are calling foul because Apple’s App Store Search Ads revenue went up soon after they implemented this policy.

With all of that having been said and now out of the way, it is important to note that Apple is claiming that its App Store Ads are seeing great revenue despite so many users opting out of personalized ads. That might be because Apple does not rely on personalization or advanced targeting for these ads, but in spite of the fact that this is the case their conversion rates are still relatively high.

The vast majority of people that use the iOS App Store, or 78% to be precise, have targeted advertising and personalized ads turned off with all things having been considered and taken into account. Their conversion rate, which refers to the percentage of users that see an ad and interact with it, hovers at around 62.5%. Surprisingly, this is actually somewhat higher than the 62.1% conversion rate for users who have allowed app tracking for the purposes of availing more personalized ads as they go through the App Store.

What’s more is that a user who has personalized ads turned off would be a cheaper target for marketing services. They will be paying less for pretty much the same conversion rate, and that might serve as a testament to Apple’s foresight. The company is clearly showing the rest of the industry that it is possible to get the best of all worlds. Users get more of a say in their privacy, advertisers can avail cheaper marketing options and Apple’s revenues continue to go up, so the only losers here are companies that are refusing to get with the times.

H/T: 9to5Mac.

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