Google has introduced Search Ads on the Google Play Store to help app developers reach more users. This allows developers to pay to promote their apps in search results on Google Play. While this could provide greater visibility, it may disadvantage small developers who cannot bid as much as larger companies. Google claims it will incorporate relevancy into its ad auctions to provide some fairness. However, it remains to be seen if this new feature will negatively impact small developers or help level the playing field.

1. Search Ads on Google Play
Is Google playing fair?
Neelanjana Barua
Content Strategist, Affle
Around the end of July 2015, Google announced its plan to roll out the Search Ads
feature on Google Play to enhance the app search experience for users and help
app developers in reaching out to their target
audience. This feature is applicable to all developers who use Search app install
campaigns on AdWords.
Along with this, Google has also endeavoured to use innovative
technologies to simplify campaign management and improve
measurement for developers and advertisers.

2. Some of these improved features are as follows:
Conversion tracking tools: They work seamlessly across channels and align with whichever measurement solution a developer chooses to use.
Google has also introduced Android first app opens, which is a new conversion tracking solution to measure when a user first opens an app after
clicking on an ad and completes an Android app install. This tracking solution works across Search, Display, YouTube.
In addition to providing app conversion tracking across Google channels, this new solution also allows developers to better align the conversion
volume they see in AdWords with the data they see in a third-party measurement solution.
To ensure data consistency and provide greater optimization options to developers, Google has also partnered with Tune, AppsFlyer, Kochava, Adjust
and Apsalar. Developers also have the freedom to opt for third-party solutions of their choice.
Additionally, advertisers can make most of their promotions through Universal App Campaigns on Google Play and other Google channels like, Search,
YouTube, the AdMob in-app network, and the 2M+ sites on the Google Display Network.

3. What could this mean for developers?
We feel that Search Ads on Google Play Store can be very beneficial for app
developers provided Google protects the interests of small developers.
Through this additional inventory of Google play store, developers can have better
chances of connecting with their target audiences. This is especially a great way for
promising developers to catch the attention of users who might have missed out or
overlooked their apps. In fact, the best part about having Search Ads featured on
Google Play Store is the scope of greater visibility amidst 1 billion people across 190
countries. Thus, the potential of a Search Ad to reach the right audience and
ultimately lead to app installs is tremendous, if done the right way.
Moreover, this move just adds another dimension to search related app installs
through the inclusion of Google Play inventory.
In terms of tracking the returns on investment, the developers and advertisers can
gain deep insights from the improved conversion tracking tools. This is particularly
useful for advertisers in gathering a better understanding about how optimally their
money is being utilized. Also, now advertisers can run their campaigns more
profitably by buying ad slots for a longer period of time with the same amount of
money that was earlier spent for weekly Chartboosting.
However, even though Google’s move presents some
valuable possibilities, it also poses some serious threats to
small developers. This is because developers now have to
shell out more money to get their ads displayed on the Play
Store and protect trademarks. While this may not be a big
deal for the affluent group of developers, the same is not true
for the budding developers community. It must be noted that
app owners are already paying a transaction fee that is
equivalent to 30% of the price of the applications and in-app
products that they sell on Google Play.
Going by the claims of significant gains made by companies like Booking.com and
Nordeus, displaying ads on the Play Store can bring about a dynamic change for the
app developers community. Even though Nordeus has not shared the exact results
of their campaign, they have acknowledged the effectiveness of displaying their ads
on the Play Store for promoting their game called ‘Top Eleven’
Besides this, now any app owner with a solid funding can
claim a top spot at the Play Store. This goes against the
neutrality of Google Play store as small developers will get
adversely affected in the bidding wars.

4. But is Google really being unfair?
With this move, Google has definitely unleashed yet another avenue for mobile monetization as global app install ad spending is increasing rapidly
over the years. Infact, according to the estimates of the research firm eMarketer, US app install ad market had hit almost $1.67 billion in 2014, which
constitutes 9% of all mobile ad spend. This figure is further expected to grow by 80% and touch $3 billion by the end of 2015. Thus, app install ads
are becoming an extremely lucrative business.
Given these profitable business prospects, any big brand from the digital space would be interested in monetizing this opportunity and Google is exactly
doing that. So, is it right to blame Google?
Moreover, we must also remember that a good product will make its mark irrespective of the impediments in the journey. The Twenty First Century con-
sumers are intelligent and even though ‘search ads’ can grab a few seconds of their short attention span, they certainly do not stand a chance of presiding
over their choices. So, this move should not dampen the spirits of small developers who are offering a quality product to users.
However, if small developers actually start suffering from the Search Ads in Google Play Store, we may soon see them moving away towards
Apple’s territory. Perhaps, this will serve as a word of caution for Google to enforce a degree of fairness in its Play Store policy.
To draw an example from ordinary life, think of the big billboards you see in the main streets while you’re stuck in traffic. Many brands pay
up large amounts of money to hoard the most highlighted spot to display their advertisements and it does work in grabbing the consumer's
attention. Whoever pays more gets to display their ads there. Google is trying to do the same thing with its Play Store but they claim to
include ‘relevancy’ as an important criterion for their ad auctions. This brings in an iota of fairness into the matter to some extent. If Google
actually ensures a level playing field to all developers through the norm of ‘relevancy’, it would offer some solace to the small players.

5. Google vs Facebook - The Big Fight on App Install monetization continues
This move also gives a clear indication of the fact that Google is preparing for a tough fight in the arena
of App Install monetization. While Facebook is already reaping the rewards of having the first mover
advantage in this field, the status quo can’t be expected to hold on for long.
Even though Google has lost the first round of App Install monetization to Facebook, the second round
will actually test the mettle of both the companies. By using all the important real estate, especially the
App Store, Google is definitely trying to change the dynamics of this game.
However, the challenge that still remains for Google is whether it can map the audience intelligence
as sharply as FB has managed to do.
Also, it will be interesting to see if Google can succeed in changing the perception of marketeers on its
attribution services for app installs, which hasn’t been quite popular. Perhaps, the picture will be clear in
a few months.