Apple Search Ads in 2024:
is it the best UA channel?

Summary

Since its launch in 2016, Apple Search Ads has become a core component of user acquisition for many iOS developers. With each iOS update, Apple continues to enhance the ad platform and expand its capabilities. Now with the release of iOS 17 in fall 2023, growth teams are reevaluating Apple Search Ads as they plan 2024 strategies. But how big a role should it play next year?

Given our daily optimization of Apple Search Ads campaigns, the Asapty team closely examines the mechanics and future of this strategic channel. Here we explore why Apple Search Ads should be a vital part of your 2024 user acquisition efforts and help to craft a winning acquisition strategy.

Back to Apple Search Ads origins and why it’s the best UA channel until now

Apple Search Ads launched in 2016 as a new paid App Store ad option. At launch, iOS had default IDFA access for user-level targeting. The Identifier for Advertisers (IDFA) is a unique, randomized ID that Apple assigns to each user's device. Various players in mobile marketing, including Google Play, App Store, Apple, Facebook, Twitter, and other ad networks, have their attribution models, but they all rely on IDFA.

The rules of the game started changing in 2020 when Apple announced ATT restrictions to require explicit IDFA permission and iOS 14 beta enabled testing this change. By April 1, 2021, Apple began rejecting apps attempting to bypass App Tracking Transparency rules using device fingerprinting, which creates unique identifiers to track users. However, these changes did not impact Apple Search Ads, as it has its own proprietary attribution API.

High intent and conversion rates

The actual mechanics behind Apple Search Ads is what actually makes the greatest benefit of this channel. 650 million users go to App Store weekly to search for new apps. The users see the advertised apps which are relevant to their search inquiries. Apple states that almost 65% of downloads come straight from App Store search.

This makes Apple Search Ads the most intent-based channel. With high intent, the app stickiness rate gets much higher, as users have a higher level of motivation to use the app from the very beginning compared to display channels.

High-quality users

Users acquired from Apple Search Ads demonstrate higher engagement and loyalty over time. According to a report by Apple, users acquired through Apple Search Ads have a 30% higher retention rate than organic users. The high lifetime value metrics make the CPI-based cost of Apple Search Ads worthwhile for maximizing LTV.

Ease to manage and navigate

As a search results ad network, Apple Search Ads has a very simple logic behind it. Unlike working with display ads, you don’t need to constantly make new videos/static creatives, search for new audiences, or deal with a complicated targeting system. Everything you need to start is a set of keywords and a dashboard to manage them.

Data privacy and transparency for users

Apple's commitment to data privacy aligns with consumer expectations. Their policies give users transparency and control over their personal data. This fosters trust and loyalty within the iOS ecosystem.

Data tracking and transparency for advertisers

The API connects directly to Apple's attribution server, which tracks user actions and App Store data with 100% accuracy and no bias. The tight integration enables Apple Search Ads to provide precise visibility into user acquisition, engagement, and other metrics within the App Store ecosystem. By relying on Apple's first-party data rather than identifiers like IDFA, Apple Search Ads attribution remains unaffected by changes like App Tracking Transparency. This unique, unbiased attribution continues to deliver robust insights for optimizing ad performance.

Positive effect on ASO

Apple Search Ads can do more than just drive direct app installs - they can also improve your organic ranking. Running Apple Search Ads for your brand keywords protects your brand name from competitors, increases your share of voice, boosts views, and drives more installs.

With the introduction of custom product pages in Apple Search Ads, app publishers have an expanded toolkit to enhance their ASO strategy. A/B testing the custom variations of your product pages to see which performs best. You can then replace your main App Store listing with the top-performing variation to maximize growth.

Continuous ad network improvement

Since its initial launch in 2016, Apple Search Ads has undergone significant enhancements by consistently adding new features and capabilities.

In addition to the original search result page, Apple Search Ads added more ad placements to expand available inventory:

• Search Tab ads, which appear in the Search results tab even before users search for apps on the App Store.
• Ads on the Today tab, which provides personalized recommendations to users. This high-visibility placement can connect your app with engaged users who are actively looking for new apps to try.
• Ads at the bottom of individual app product pages. These ads can target users who are already interested in a specific app or app category, catching their attention right before they install a competing app.

These new ad placements work as display ads showing your app to millions of users in Apple App Store.

Bottom line

Apple Search Ads has become a vital component of user acquisition strategies for iOS developers due to its high intent and conversion rates, acquisition of high-quality users, ease of management, data privacy and transparency, positive effect on App Store Optimization (ASO), and continuous network improvements.

Despite changes in data privacy rules and economic challenges, Apple Search Ads remains a cost-efficient and profitable channel due to its proprietary attribution API and first-party data usage. The introduction of custom product pages and additional ad placements further enhances its effectiveness.