ASO+ASA: Keywords Cannibalization And Cost-Effective Traffic Protection

In this article, we'll introduce Apple Search Ads, the impact of ASO on ASA, keyword cannibalization, and the cost-effectiveness of brand traffic protection in the App Store. Here is the content:

● What is Apple Search Advertising (ASA)? 
● ASA and ASO: Maximize the result of app promotion
● What is the cannibalization of traffic?
● How to know if it's worth buying traffic?
● How to measure the extent of increment and cannibalization?
● Cost measure
● Conclusion

What is Apple Search Advertising (ASA)? 

Apple Search Advertising (ASA) is an advertising platform that promotes iOS applications. It allows you to advertise on the app store: in the search tab and in search results. You can see an example of such an ad in the image below.

According to the app store:
● Users who can find apps through search: 70%
● Downloads are done immediately after an AppStore search: 65%
● Average conversion rate for search results ads: 50%

Therefore, advertising an app through Apple Search Ads not only allows you to reach a large number of users but also provides high-quality traffic. Apple search ad users have roughly the same engagement rate as organic users.

ASA and ASO: Maximize the result of app promotion

App Store Optimization (ASO) is a comprehensive process of optimizing the homepage of an app in the App Store. The work of the ASO affects the effectiveness of the ASA. For example, graphic optimization makes the app’s homepage more noticeable, thus increasing install conversions for both organic and paid traffic. The higher the conversion rate, the more clicks and installs you get, and the lower the cost.

Textual metadata is one of the relevant factors that influence Apple's search ads. The relevance of the app determines whether or not your ad will be displayed in the app store for a search query. User reaction to the ad is an indicator of its relevance. Based on user responses, the ASA decides which ads should be shown more often. This is why it is important to work with the ASO to manage the purchase of the ASA.

Apple Search Ads, in turn, provide ASO with valuable data: app-related keyword recommendations, keyword popularity rankings (search volume), and keyword conversion rates for apps in ad campaigns.

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What is the cannibalization of traffic?

Apple's search ads are often used for multiple tasks at once: both to attract users and to collect data. However, in some cases, the only reason for launching a search campaign is to protect branded search terms.

In some cases, ASA allows you to use a competitor's app name to promote your app so that competitors can also use your brand name to attract users to their product. That's why some advertisers use ASA to protect their brands by advertising on their own branded keywords to reduce churn that competitors can generate. Partial consumption of organic search traffic is possible in this case.

Traffic cannibalization is the phenomenon where one channel (Apple Search Ads) "consumes" traffic from another channel (from organic search). In this case, the user searches for the app by keyword search and should install it from the organic search results, not from the ad.

How to know if it’s worth buying traffic?

If your app is already number one in organic search results, so, is it worth buying traffic? Is there any way to know? All applications have no clear answer. First, it's important to separate keywords into branded and non-branded terms. If we talk about brand traffic, we can assume that users searching for apps by brand name are particularly interested in them. So there's a good chance they'll find and download your app. But first, not all apps have the same strong branding and user loyalty. Second, the popularity and similarity of competitors also play a role. Weaker competitors are less of a threat to your brand's traffic, but if they have similar features, users might consider downloading them. Third, sometimes the brand name becomes generic and it is used to find similar applications.

The ideal solution is to examine the search results and make separate decisions for each branded and non-branded query in each country. When analyzing search results, see if your app stands out, showing stories, developers, and other cards.

If your app has in-app purchases, don't miss the opportunity to promote them. Promoting in-app purchases is a great advantage of an app's visibility on the app store. First, they promote and rank higher because apps that promote money are profitable for Apple. Second, optimizing the promoted IAPs will make them stand out in search results and take a position right below the app. This way, your app will occupy two positions, covering the entire screen of search results.

Additionally, it is reasonable to evaluate the cost-effectiveness of using Apple Search Ads before making a decision. We recommend that you perform an incremental analysis of your ad campaigns on a regular basis.

How do measure the extent of increment and cannibalization？

In mobile marketing, it is often difficult to draw the line between organic and paid traffic. Because of this, a marketer may misjudge the cost of an ad and even pay for installations he could have gotten for free. You can avoid this if you measure incremental. It shows how many new installs you actually got. The higher the delta rate, the more "obvious" the result.

Therefore, to calculate the delta, you need to collect the following data:
1. The number of installs from app store searches (the first time a customer views or downloads your app from an app store search. Including search ads on app store searches).
2. The number of search installs from the app store.
3. Ad campaigns and new download metrics (apps downloaded from new users who have never downloaded your app).

And here is a simple calculation. Subtracting the share of paid traffic from the total number of installs from Search, we get the number of organic installs during the ad campaign.

● App Units from App Store Connect including ASA - New downloads from Apple Search Ads = Organic installs during ASA campaign.

Next, subtract the number of organic installs in the ASA campaign period from the number of organic installs in the period before setting up the ASA campaign:

● App Units from App Store Connect before ASA - Organic installs during ASA = Cannibalized installs.

Then subtract the share of cannibalized installs from the number of ASA installs:

● New downloads from Apple Search Ads - Cannibalized installs = Incremental installs.

Finally, the incremental rate = Incremental installs / (New downloads from Apple Search Ads) * 100

Likewise, the higher the delta rate, the lower the level of cannibalization. But even at a low delta, you shouldn't rush off a campaign because then you'll be giving your competitor the first spot in search results.

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Cost measure

To calculate cannibalization costs, you need to generate assumptions for your competitors' conversion rates. In this case, the main data point you can use might be the conversion rate of the keyword, which you can get from your own search ad campaigns and benchmarks by category. Define a competitor's hypothetical conversion rate in three scenarios: high CVR, medium CVR, and low CVR.

● Cost of the protected install in the first scenario = the total cost of the ASA campaign / (impressions * high CVR)
● Cost of the protected install in the second scenario = the total cost of the ASA campaign / (impressions * mid CVR)
● Cost of the protected install in the third scenario = the total cost of the ASA campaign / (impressions * low CVR)

Comparing this cost to the install price of Apple's search ads, you can estimate how much you're paying for the protection surcharge for this campaign, and how much your search ad dollars actually go to the competition. Unfortunately, being aware of these costs doesn't solve the problem of relying on the most popular keywords in organic search. But at least it can help you decide whether to start, stop, or change the budget you invest in certain search ad campaigns.

Conclusion

We hope our advice helped you decide to launch an ad campaign, optimize your strategy, and manage your budget. However, keep in mind that Apple's search ad campaigns operate in an ever-changing environment, and many factors (metadata updates, seasonality, competitors) can affect app conversion rates. That's why it's imperative to retest your campaigns on a regular basis.