Google India's Play Store ads irks startup entrepreneurs, Android app developers

NEW DELHI: Google India’s introduction of ads inside the Play Store, its mobile app aggregation platform, has irked startup entrepreneurs and Android app developers alike who lament that now anyone with cash can now pay their way to the top in the Android app store, which was till now neutral to use.

Startup entrepreneurs say they will have to shell out extra money for displaying ads on the Play Store to protect trademarks besides already sharing app download revenues with Google. “I will now have to shell out double the money. We were already paying Google about 30% of money made through app downloads or transactions,” said Saurabh Aggarwal, CEO of Sequioa Capital-funded Octro. “Now I will have to shell out dollars to buy my own company’s keyword to make sure that I remain on top of the app store when a customer types my app’s name,” he added.

Google introduced the new mobile ad search policy 40 days ago globally and it is being slowly rolled out in various markets. In India, the ads on Google Play Store emerged last month in various categories. “The move goes against the neutrality of the Google app store because other apps which do not have the budget but are good apps will show lower than the apps that have advertised. Apps with good functionality but small budget may miss out on potential users,” says Alan DSouza, CEO, Vavia Technologies.

Google India claims that its new policy is aimed to discover apps with search ads. “Our focus has always been to provide a level playing field where everyone has a chance to be successful. Previously, apps got visibility when they ranked high in the app store, and developers didn’t have much control over how their app was surfaced in search. These ads benefit smaller players because our ads auctions takes relevancy into account,” said a Google India spokesperson.

Android developers, however, have a different take. “The will create a problem for smaller app startups who can’t shell out money to protect trademarks or put an ad on the Play Store. Basically, they will have to work extra hard to get on top or protect their keywords,” said Prateek Srivastava, CEO of AppInventiv. Apple’s App Store doesn’t offer ads in its app store for now.
“For mobile apps, it will definitely change the business that has happened so far,” said Ujjwal Trivedi, an app developer. Trademark policies on the Android market will be similar to ads on Google’s web search. However, for brand names which are also verbs and not trademarked by app developers, it may fall into a grey zone, as rivals can potentially buy a startup’s keyword name. “App Promotion Ads on Google Play must conform to strict editorial policies. Google may remove App Promotion Ads in response to trademark owner complaints,” a Google India spokesperson responded.

However, not all app developers go through the process of trademarking apps or their brand. It will be a bidding war that will ensue on Play Store as its there on Google’s Ad Search besides the fee for hosting the app. For applications and in-app products that any startup hosts on Google Play, the transaction fee is equivalent to 30% of the price. “In cases where an app startup has not trademarked its brand, competition is going to get them. However, the in app stores people most of the time know what they are looking for. Only time will tell how marketeers will get innovative to leverage this,” said Rohith Veerajappa, cofounder of Wow Labz.