We all love our smartphone apps, right? Most of them are free and make our lives easier or more fun.
But have you ever wondered how these free apps make money? One of the ways is through advertising.
Not just any advertising, but personalized ads. These ads use information from your phone, like where you are, what you do on the app, or even the photos you take.
They do this to show you ads that are more likely to interest you. Some people aren’t happy about this because they feel it’s a bit nosy and goes against their privacy.
Because of these concerns, there’s been a lot of talk about banning these kinds of ads.
Now, you might think, “Great, no more creepy ads that know everything about me!” But, according to a study from the Technical University of Munich (TUM), there might be a downside.
If these personalized ads are banned, we might end up with fewer free apps to choose from.
The study looked at what happened when Google decided to ban personalized ads for children’s apps in its Play Store in 2019.
The researchers, Prof. Jens Foerderer and Tobias Kircher, compared the number and type of kids’ apps available before and after the ban.
Here’s what they found:
- After the ban, the number of new apps dropped by over a third.
- Apps were more likely to be removed from the store, with the chances increasing by over 10%.
- Apps weren’t updated as frequently. This isn’t just about adding new features, but also about fixing problems and keeping the apps secure.
This wasn’t just a small hiccup. Nearly all the app companies were affected. It hit the smaller companies and newer ones, mainly start-ups, the hardest. The only apps that seemed to do okay were the super popular ones.
The researchers think that if there’s a ban on personalized ads for all apps, not just kids’ apps, we could see a big drop in the number of apps available for everyone.
So, what does this mean for us?
Jens Foerderer says that while it’s essential to protect our data, especially for kids, there’s a challenge. People love free apps, and companies rely on ads to make money from them. If this changes, we might lose out on some great apps.
The study aims to help both the people making the rules and the businesses understand these challenges better.
Tobias Kircher advises companies to get ready for these potential changes. They should think about which parts of their apps people might be willing to pay for. They might also need to find ways to make people more open to paying for apps in the first place.
In simple terms, we all want our data to be safe, and at the same time, we enjoy the variety of free apps.
But if rules against personalized ads become stricter, our choices might become limited. It’s a tricky balance to strike, and both sides will need to work together to find the best solution for everyone.
Follow us on Twitter for more articles about this topic.
