GTM Sauce

Sub Club by RevenueCat · 2024-09-04

Marketing Your App More Efficiently with Apple Search Ads — Dilip Reddy, Search Ads Optimization

Data engineer Dilip Reddy, founder of the Apple Search Ads platform Search Ads Optimization, walks David Barnard through ASA practice: bidding brand keywords down while watching impression share, starting new storefronts with very low bids, splitting keywords by intent with exact and broad match plus the search terms report, bidding bad keywords down instead of deleting them, judging ASA on time to break even and total revenue rather than 7-day ROAS, reacting to recent data instead of seasonality, and testing custom product pages by splitting US states. Host plans ASA for his weather app.

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11 tactics

Practitioner pattern · Dilip Reddy (Founder of Search Ads Optimization, a platform for managing and scaling Apple Search Ads)

Can keep the same share of views at about half the cost; results vary by app

Run brand keywords if your app is easily replaced by a competitor (skip if network effects make you irreplaceable). Then test lower brand bids and track impression share, which Apple reports per search term per country. If impression share holds (e.g. ~90%), you have roughly halved the cost; some companies accept ~70% impression share for a ~70% cost cut. Apple charges per tap and favors the relevant brand app, so you can often win your brand term below competitors' bids, but a competitor with much better screenshots, messaging or ratings can take share, so keep monitoring. Move the savings to generic high-intent keywords that bring new users.

Workedapple-search-ads
Sub Club by RevenueCat · 2024-09-04

Practitioner pattern · Dilip Reddy (Founder of Search Ads Optimization, a platform for managing and scaling Apple Search Ads)

Some apps see surprising results in new markets; no numbers

Instead of only tier-1 countries, add as many countries as possible: a handful of localized keyword sets (Spanish, Portuguese, German, French) covers most of Latin America and Europe, and elsewhere Apple defaults to English. Copying campaigns takes minutes. Test newly opened storefronts (in 2024, Brazil and about six other Latin American countries). In any new storefront, start with bids so low they get no impressions and raise gradually, because a high start (e.g. $10) may pay double for ~90% of the same installs.

Workedapple-search-adsmarket-selection
Sub Club by RevenueCat · 2024-09-04

Practitioner pattern · Dilip Reddy (Founder of Search Ads Optimization, a platform for managing and scaling Apple Search Ads)

Guest's main way to scale search ads; overall performance improves, no numbers

Keep one relevant keyword list, classified into groups (brand, high-intent generic, low-intent, competitor, broad) with different bids: e.g. for a yoga app, 'yoga' is high intent, 'pilates' low intent and bid lower. Pick keywords yourself (ChatGPT only for ideas). Run each core term as both exact and broad match; broad match catches changing long-tail variants that competitors often don't bid on. Check the search terms report occasionally to see where spend goes; when broad match surfaces a relevant term (e.g. 'weather alerts' from 'weather'), add it as its own exact + broad keyword. Scale by adding relevant keywords, broad match and countries, with a simple campaign structure rather than hundreds of campaigns per country.

Workedapple-search-ads
Sub Club by RevenueCat · 2024-09-04

Practitioner pattern · Dilip Reddy (Founder of Search Ads Optimization, a platform for managing and scaling Apple Search Ads)

Keeps keywords that may later become the most profitable; no numbers

When a keyword or matched search term underperforms (e.g. a yoga ad showing on 'Peloton'), find the keyword causing it and bid it down so low that installs are very cheap or Apple stops showing the ad, then retry in two or three months. Only add a negative keyword when the term is consistently bad and clearly never a fit. Avoid the common advice of removing any keyword that doesn't make revenue in the first week, since competitors' bids change week to week.

Unknownapple-search-ads
Sub Club by RevenueCat · 2024-09-04

Practitioner pattern · Dilip Reddy (Founder of Search Ads Optimization, a platform for managing and scaling Apple Search Ads)

Brand keywords have the highest ROAS because other channels already drove the user to the App Store. Treat brand as its own entity: never compare it with generic, competitor or broad match keywords, and don't mix its data into the overall Apple Search Ads numbers. Be skeptical of case studies that don't say whether ROAS is brand or generic.

Unknownanalytics-attributionapple-search-ads
Sub Club by RevenueCat · 2024-09-04

Practitioner pattern · Dilip Reddy (Founder of Search Ads Optimization, a platform for managing and scaling Apple Search Ads)

Don't pre-adjust bids for seasonality. Check App Store Connect's last two years of organic traffic to know what to expect (search ads trends correlate), then review campaigns weekly and bid up or down per keyword or country ad group based on the past 7 or 15 days. Expect CPAs to rise around Thanksgiving/Black Friday in the US even for non-shopping apps; February to summer is a quieter, cheaper time to start testing ASA.

Unknownapple-search-ads
Sub Club by RevenueCat · 2024-09-04

Practitioner pattern · Dilip Reddy (Founder of Search Ads Optimization, a platform for managing and scaling Apple Search Ads)

40-50% first-week return is fine for subscription apps

ASA doesn't report revenue, so link keywords and ad groups to revenue via an MMP or RevenueCat. Don't set a hard revenue target and kill the channel if missed; the e-commerce 400% ROAS rule doesn't fit subscriptions. Track time to break even: 40-50% ROAS in the first week is fine while you add keywords and tune, since a one-time install cost keeps earning renewals. Optimize for revenue and ROAS together: a competitor spending twice as much at lower ROAS may grow bigger and outbid you. Get install-to-trial and trial-to-paid conversion right first.

Unknownapple-search-adsanalytics-attribution
Sub Club by RevenueCat · 2024-09-04

A subscription app with strong organics · B2C · host's industry contact

Grows faster by stacking subscriber cohorts; no results given

An app with strong organic traffic throwing off cash set its paid acquisition bar at 100% ROAS by the first annual renewal (365 days) instead of 7-, 30- or 90-day ROAS, relying on renewals in later years to make each cohort profitable.

Unknownpaid-socialfinancing
Sub Club by RevenueCat · 2024-09-04

Practitioner pattern · Dilip Reddy (Founder of Search Ads Optimization, a platform for managing and scaling Apple Search Ads)

Once generic impression share is maxed out, use keyword-specific custom product pages, e.g. a Black Friday page for US Black Friday keywords. For A/B tests, run the same keywords with the default product page in half of US states and the new custom product page in the other half, then compare. Splitting by geography is preferred over ad scheduling by time of day, since intent varies by time (a yoga app in the morning).

Unknownapple-search-adsaso
Sub Club by RevenueCat · 2024-09-04

Practitioner pattern · Dilip Reddy (Founder of Search Ads Optimization, a platform for managing and scaling Apple Search Ads)

About five or six installs a day from people searching for your app's use

For new apps, run Apple Search Ads on high-intent keywords with a small daily budget ($10-20/day for about 5-6 installs a day) as customer discovery, and use those users to improve the app. Also useful when better-ranked competitors make it nearly impossible to rank organically for a keyword.

Unknownapple-search-adsvalidation
Sub Club by RevenueCat · 2024-09-04

Host plans to start Apple Search Ads for his weather app on terms like 'weather' and 'weather radar' as broad match. Search terms for features the app lacks, like 'weather alerts', would get their own exact match at a very low bid (they bring installs that leave bad reviews or don't convert), with bids raised once the feature ships. The guest adds that a consistently bad term can be made a negative keyword.

Unknownapple-search-ads
Sub Club by RevenueCat · 2024-09-04

Numbers mentioned

WhoMetricValueContextWhen
Host's long-running subscription appretention20%
approximate
Share of subscribers from the first month still subscribed 7 years later (M84)39:30
Subscription app with strong organic traffic targeting 365-day ROASroas100%
goal
Target: reach 100% ROAS by the first annual renewal (365-day ROAS)39:30
benchmarkGeneric 'good ROAS' rule of thumb from e-commerce, which the guest says does not apply to subscription appsroas400%
approximate
37:03
benchmarkFirst-week ROAS on Apple Search Ads that is still an acceptable result for a subscription approas40–50%
approximate
First week; judge on time to break even37:45
benchmarkCPA that can still return on ad spend on high-intent keywords in categories like finance and health and fitnesscpaUSD 50
illustrative
4:12
benchmarkRealistic brand-keyword impression share (never 100%)share90%
illustrative
Impression share on own brand keywords13:29
benchmarkBrand-bid reduction trade-off some companies acceptshare70%
illustrative
Brand impression share some companies accept if brand cost falls by 70%14:04
benchmarkInstalls kept when bidding half in a new storefront, versus starting high (e.g. $10)downloads90%
illustrative
Share of installs possibly retained at half the bid8:15
benchmarkEffect of competition on ASA CPA: ~25 competing weather apps bidding vs nonecpa+10 x
illustrative
CPA multiple for the same installs with 25 competitors bidding, vs cents in the US with none51:26
benchmarkMinimal Apple Search Ads budget for a new app to get high-intent users for customer discoveryad spendUSD 10–20/day
approximate
For about five or six installs a day58:24
benchmarkInstalls a new app can get from a $10-20/day Apple Search Ads budgetdownloads5–6 installs/day
approximate
58:24
marketNew Apple Search Ads storefronts opened in 2024 (Brazil and other Latin American countries)count7 countries
approximate
Brazil plus about six other Latin American countries7:37