Similar to the Google AdWords model, the pay-per-install ad product allows app marketers to bid on keywords or lookalike audiences in order to gain rankings in the App Store or prominence in a search.
While app store optimisation (ASO) has become a growing field, like SEO, it has its limitations, particularly with regards to time taken in order to become effective from a performance perspective. For app marketers, performance refers to app installs.
According to Apple, search ads do not require minimum bids, which means that large app marketers will be unable to outbid small app marketers. It does, however, mean that either type of app marketer can bid on a competitor's keyword.
With the Play Store and App Store cluttered with a combined 6 million apps, the option of paid search on branded and generic keywords gives app marketers the opportunity to achieve app discovery with a potential future user or customer. In-platform advertising is a billion dollar business, with a similar ad format comprising 4% of Amazon's Q2 2018 earnings.
App marketers in South Korea and Japan will be able to run campaigns with Search Ads from 1 August, targeting by keyword searches of site visitors.