Podcast Summary: Marketing Your App More Efficiently with Apple Search Ads

Podcast Information:

• Title: Sub Club by RevenueCat
• Host/Authors: David Barnard, Jacob Eiting
• Episode: Marketing Your App More Efficiently with Apple Search Ads — Dilip Reddy, Search Ads Optimization
• Release Date: September 4, 2024

Introduction to Dilip Reddy and His Journey into Apple Search Ads Timestamp: 00:01 – 02:46

David Barnard welcomes Dilip Reddy, a data engineer turned marketer, to discuss the intricacies of Apple Search Ads. Dilip shares his transition from a computer science background at Bank of America to working with unicorn app companies around 2016. His fascination with data architecture led him to explore Apple Search Ads due to the platform’s granular data insights. Dilip mentions, “Apple Search Ads gives us control over every aspect at a granular level” (05:23).

High Bids and Cost Per Acquisition (CPA) in Apple Search Ads Timestamp: 02:46 – 05:58

Dilip discusses the phenomenon of high bids and CPA in competitive categories like finance and health & fitness. He contrasts Apple Search Ads with platforms like Meta, highlighting that Apple’s intent-based model allows for experimentation despite high CPA. Dilip states, “We cannot stop just because it’s high CPA because they’re high intent” (03:01). He emphasizes the advantage of controlling bids to optimize CPA, noting, “We are in control of everything” (05:23).

Trends in Apple Search Ads for 2024 Timestamp: 06:17 – 10:53

The conversation shifts to 2024 trends, where Dilip observes a move towards expanding campaigns to more countries, leveraging localization strategies. He advises testing new geographies introduced by Apple, such as Brazil and six other Latin countries, to uncover surprising results. Dilip points out, “You can expand to pretty much every country in the world” (07:32). He also notes an overall increase in CPAs, attributing it to competitive bidding and the influx of new apps fueled by AI advancements.

Brand Defense: Necessity or Extortion? Timestamp: 11:50 – 19:46

David brings up the contentious topic of brand defense in App Store Search Ads. Dilip acknowledges its complexity, suggesting that brand defense can be profitable for apps vulnerable to direct competition. He explains, “If your app is easily replaced with a competitor app, you have to run brand” (12:14). Dilip advises experimenting with lower bids on brand keywords to reduce costs while maintaining significant impression share. He emphasizes monitoring impression share through Apple’s provided metrics to ensure optimal budget allocation.

Understanding CPA Variations and Keyword Strategies Timestamp: 19:46 – 30:04

Dilip delves into strategies for managing high and low CPAs across different keyword types. He advocates for classifying keywords based on intent, bidding higher on high-intent keywords like “yoga” and lower on related but lower-intent terms like “pilates.” Dilip explains, “We can expand keywords a lot and think of it as very dynamic” (23:25). He highlights the importance of using both exact and broad match keywords to capture a wide range of relevant searches while maintaining control over CPA.

Managing Seasonality and Its Impact on Campaigns Timestamp: 30:27 – 35:01

The discussion turns to seasonality, with Dilip noting that competitive periods like Thanksgiving can significantly raise CPAs across all categories. He recommends anticipating these trends by aligning campaign strategies with historical data and organic traffic patterns. Dilip advises, “We should not make any assumptions, we can see the data and act accordingly” (34:37). This data-driven approach ensures that campaigns remain responsive to fluctuating market conditions.

Measuring and Optimizing ROI in App Store Search Ads Timestamp: 35:01 – 43:52

David and Dilip explore the complexities of measuring Return on Ad Spend (ROAS) and Return on Investment (ROI) in the app ecosystem. Dilip explains that traditional ROAS metrics may not directly apply to subscription-based apps due to recurring revenue streams. He emphasizes the importance of considering long-term metrics like Lifetime Value (LTV) and time to break even. Dilip states, “ROAS should not be the primary metric. It should be a combination of revenue and ROAS” (43:52). He underscores the significance of cohort analysis and retention rates in evaluating campaign success.

The Hypothetical Impact of Apple Search Ads on App Store Optimization (ASO) Timestamp: 44:27 – 47:48

Addressing the debated topic of ASA’s impact on ASO, Dilip presents a “conspiracy theory” rather than a confirmed hypothesis. He suggests that increased download volumes from ASA campaigns may correlate with improved organic rankings, although this remains speculative. Dilip cautions against allocating significant budget solely for this potential effect, advising listeners to focus on tangible performance improvements instead.

Scalability of Apple Search Ads Timestamp: 48:14 – 55:52

Dilip discusses the scalability challenges of Apple Search Ads, contrasting them with other platforms like Meta. He advises that scaling should focus on adding more relevant keywords and expanding to additional geographies rather than creating numerous campaigns for a single country. Dilip remarks, “The best way to scale is to add more keywords” (50:52). He also highlights the unique advantage of Apple Search Ads in avoiding ad fatigue, as ads are dynamically served based on user intent rather than repetitive creative exposure.

Leveraging Custom Product Pages for Enhanced Performance Timestamp: 55:52 – 58:14

The hosts explore the benefits of using custom product pages tailored to specific keywords. Dilip explains that creating keyword-specific product pages allows for better alignment with user searches, enhancing conversion rates. He provides examples of seasonal campaigns, such as creating a dedicated product page for Thanksgiving deals. Dilip emphasizes the utility of A/B testing through separate product pages to optimize performance and ROAS.

Final Insights and Recommendations Timestamp: 58:14 – End

In closing, Dilip offers actionable advice for new app developers:

• Use ASA for Customer Discovery: “Use Apple Search Ads as kind of customer discovery thing” (58:24).
• Start Small and Scale Gradually: Begin with minimal budgets to test high-intent keywords before scaling.
• Monitor and Adapt: Continuously track campaign performance and adjust strategies based on data insights.
• Focus on Retention: Ensure that in-app experiences are optimized to retain users acquired through ASA campaigns.

Dilip also promotes his platform, Search Ads Optimization, as a tool designed to help scale Apple Search Ads profitably.

Key Takeaways:

• Granular Control and Data Insights: Apple Search Ads provide detailed data, allowing marketers to fine-tune campaigns effectively.
• Strategic Keyword Management: Balancing high and low intent keywords, and leveraging exact and broad matches, is crucial for optimizing CPA and ROAS.
• Adaptability to Trends and Seasonality: Staying responsive to market trends and seasonal fluctuations ensures sustained campaign effectiveness.
• Long-Term ROI Focus: Emphasizing metrics beyond immediate ROAS, such as LTV and retention, aligns marketing efforts with sustainable growth.
• Scalability through Expansion: Adding relevant keywords and exploring new geographies are key strategies for scaling Apple Search Ads campaigns.

Notable Quotes:

• Dilip Reddy: “Apple Search Ads gives us control over every aspect at a granular level.” (05:23)
• Dilip Reddy: “We cannot stop just because it’s high CPA because they’re high intent.” (03:01)
• Dilip Reddy: “You can expand to pretty much every country in the world.” (07:32)
• Dilip Reddy: “Use Apple Search Ads as kind of customer discovery thing.” (58:24)

This episode provides a comprehensive exploration of the nuanced strategies involved in leveraging Apple Search Ads for app marketing. Dilip Reddy’s insights offer valuable guidance for marketers aiming to optimize their campaigns, manage costs, and achieve sustainable growth in the competitive App Store landscape.