Internet based start ups in India would now be having a tough time as Google’s new policy on advertisement will make developers pay, if they want to dominate the search list. So here’s what happened. Start up entrepreneurs were till now paying 30% of the money made through app downloads or transactions to Google for Playstore. But now with Google having introduced ads in Play Store, more money needs to be shelled out to buy keywords. This would ensure that when a user types out the name of an app , results shows only that . And all this doesn’t come for free.
While start up entrepreneurs feel Google is violating neutrality and only rich apps can make it to the top, Google has a different stand on the same. It claims that the new policy is meant for level playing. “Previously, apps got visibility when they ranked high in the app store, and developers didn't have much control over how their app surfaced during search. These ads benefit smaller players because our ads auctions take relevancy into account," said a Google India spokesperson.
However, the android developers have echoed the start up owners’ views. "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 one developer.
Google has 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.
"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 said.
But, this doesn’t hold true as app developers going through the process of trademarking apps or their brand isn’t a mandate. 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.