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Tapjoy alters marketing strategy to comply with App Store changes
Down but not out, Tapjoy confirmed to AllThingsD that it is modifying its incentivized purchases to work within Apple's new ranking system and to ensure its apps will make their way into the App Store. Last week, Apple made changes in its app store ranking system that downplayed the ranking of apps, and reviewers even rejected some apps that include cross-application marketing programs. The largest company affected by these changes was Tapjoy, a social and mobile game distribution network that offers these "incentivized purchases." In this system, an app developer pays money to be promoted by another application within Tapjoy's network. When a user wants to purchase an in-app item, like a new level, the user can download one of these sponsored apps in lieu of paying for the upgrade using virtual currency. This system increases the potential audience for these smaller developers and helps them increase their download numbers. Tapjoy's system was so successful it artificially propelled some apps to the top of the App Store because they were downloaded so often. Tapjoy modified its cross-marketing system and these changes appear to be working. CEO Mihir Shah confirmed "[Apple has] rejected certain apps for a certain mechanism. When we have tweaked that mechanism we have seen apps approved." These changes supposedly include a self-imposed cap that limits the usage of these pay-per-install promotions. Shah also re-iterated that Tapjoy is just going through some growing pains, and Apple has not "shut them down." While Tapjoy struggles, this circumstance may pave the way for other app networks, like Appia, to make inroads into this lucrative mobile marketing approach.
Apple banning pay-per-install apps from the App Store says Tapjoy
Apple is not only tweaking its App Store rankings to downrank pay-per-install applications, it may be actively banning these applications from the App Store. According to Tapjoy, several developers within their network are receiving rejection notices from Apple because their applications feature a pay-per-install promotion. This cross-application promotion lets users buy virtual in-app goods by downloading other applications instead of sending a payment. This practice has been criticized because it artificially boosts the download counts of applications. Users download these advertised applications because they want something for free, not because the app is desirable. Tapjoy claims these incentive-based downloads are not directly prohibited by Apple's developers guidelines, but believes Apple is applying section 3.10 to apps within its network. Section 3.10 of Apple's developer agreement states: Developers who attempt to manipulate or cheat the user reviews or chart ranking in the App Store with fake or paid reviews, or any other inappropriate methods will be removed from the iOS Developer Program Tapjoy defends its pay-per-install model by claiming the system is misunderstood. It acknowledges that campaigns may boost the downloads of some participating developers, but the overall model is beneficial to users, advertisers, and developers. Tapjoy supports the recent changes to Apple's ranking algorithm and is asking Apple to reconsider its unofficial ban on pay-per-install applications.
