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Apple to start showing ads in App Store

As Apple promises changes for iOS developers, a new survey shows that Mac developers are feeling left out in a big way – especially when it comes to the App Store.

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In a major shake-up, technology giants Google and Apple have reportedly been testing a new revenue sharing model for developers that would give them more money when users subscribe to a service via their apps.

SAN FRANCISCO (AP) — Apple says that it will start showing paid ads when people search for apps in its popular mobile store. “Whether updating content on a regular basis, providing on-demand use of a service, or giving access to a large collection of content, successful auto-renewable subscription apps are equipped to offer continued utility and enjoyment to their subscribers”.

Apple is hoping the changes starting this summer will bring in more money for itself as well as for independent software developers who make apps for the iPhone or iPad.

“Developers will also receive more revenue for qualifying subscriptions after one year, have greater pricing flexibility, and more”. We don’t know when this plan will go into effect, and Google hasn’t officially commented yet.

If the new subscription model becomes widely adopted, it will represent a fundamental shift in the economics of the App Store.

Another change Apple is planning to add to the App Store are search-based ads, which corroborates a rumor that first sprung up about two months ago. In other words, developers will only be able to target search queries not specific demographics of users. Recode is reporting that Google will be doing just that, but it’s actually an even better deal for developers.

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A broader takeaway from Schiller’s enlightening interview is that WWDC is going to be chock-full of interesting announcements.

Apple to start showing ads in App Store