Having tweaked its App Store chart algorithms to take account of usage as well as downloads, Apple has sprung another surprise on iOS developers this week by starting to reject apps that use “incentivised app download” platforms, while at the same time suggesting its own iAd mobile advertising network may be a more suitable method.
These services, run by startups including Tapjoy and Flurry, are used most heavily in iOS social games, where players are offered virtual currency or items that they’d otherwise have to pay for, in exchange for downloading another app or game. The developer of the latter pays a per-install fee to the middleman, which then shares those revenues with the developers of apps hosting the offers.
These kind of incentives have been standard practice in the social games industry for some time, although not without controversies – in Tapjoy’s former incarnation of Offerpal, it was one of the companies at the centre of tech blog TechCrunch’s “ScamVille” campaign against offers that signed people up to premium-rate subscriptions.
In recent months, incentivised app downloads have been increasingly popular for iOS developers who want to push their apps up the App Store charts. Now Apple has cracked down on the practice, with Tapjoy claiming that in rejecting updates to several apps using these services, Apple has cited clause 3.10 in its developer licence, which stipulates that developers must not “attempt to manipulate or cheat the user reviews or chart ranking in the App Store with fake or paid reviews, or any other inappropriate methods”.
“It seems there may be a new interpretation of the existing 3.10 clause, which is a bit surprising, as Tapjoy, AdMob, iAd, Flurry, W3i and others all power various forms of app install advertising,” says Tapjoy in a statement, before going on to suggest that the ban is due to “misconceptions” around the pay-per-install model.
“We believe there are significant benefits to the advertiser (only pay for what you get), the publisher (monetise users who otherwise wouldn’t pay), and perhaps most importantly to the users, who not only get to discover new, exciting applications, but receive what is essentially a coupon for ad-funded virtual currency inside one of their favorite apps.”
Tapjoy, its rivals and key developer clients are seeking meetings with Apple’s senior developer relations executives to establish what the new interpretation of clause 3.10 is, and whether Apple will be flexible on it. It may seem like a lost cause, but there have been previous cases – a proposed ban on using certain kinds of game middleware for example – where Apple has backed down in the face of developer protest.
One incentive not to do so in this case may be the fact that Apple has an inhouse service that offers an alternative to offer networks: iAd. The company’s mobile ad network was originally pitched as a way for top-tier brands to launch slick interactive adverts within iOS apps, but it also has an offshoot called iAd for Developers.
“The iAd for Developers program is a great way for developers to promote their paid or free apps to millions of iPhone and iPod touch users around the world,” explains its official website. “Using this unique, cost-effective advertising program, you can reach the right audience to drive more downloads of your iOS 4 app. Getting started is easy. You only need to create the banner ads and we do the rest to get your iAd up and running.”
The perceived ban on incentivised download networks may be seen in a new light by developers who have received emails this week from Apple’s iAd sales team, referring explicitly to the App Store chart algorithm changes, if not to the crackdown on offers specifically.
Apps Blog has seen one email sent to a developer from an iAd sales exec, which reads: “I am sure you have been reading about how the ecosystem of how you get ranked is seemingly changing, and it seems as though there is more of a focus of engagement and quality which is something I would like to discuss with you. Driving these quality users and new unique users to your platform will certainly help with driving ranking, but also help on actually having people use the application for what it is intended.”
Killing incentivised app download networks while promoting iAd for Developers may well spark further criticism from developers, but with Apple due to announce its latest quarterly financials tonight, analyst questions in the ensuing conference call may yield further information on Apple’s interpretation of clause 3.10.
