# How Google Play’s new Branded Ad Slot is Affecting Organic Downloads

- Link: https://phiture.com/mobilegrowthstack/how-google-plays-new-branded-ad-slot-is-affecting-organic-downloads/
- Published: 2024-06-10T15:39:29+01:00
- Author: Joy Staples

In May 2023, Google started testing a new branded ad slot on the Play Store, which
has since become a permanent fixture. This slot requires app publishers to bid on
their own brand names to secure the top ad placement, a move that has significantly
reshaped app marketing strategies and impacted organic download metrics.

 

Table of Contents

 * [What is the new branded ad slot on Google Play about?](https://phiture.com/mobilegrowthstack/how-google-plays-new-branded-ad-slot-is-affecting-organic-downloads/#what_is_the_new_branded_ad_slot_on_google_play_about)
 * [Impact on organic downloads](https://phiture.com/mobilegrowthstack/how-google-plays-new-branded-ad-slot-is-affecting-organic-downloads/#impact_on_organic_downloads)
 * [Impact on download decisions](https://phiture.com/mobilegrowthstack/how-google-plays-new-branded-ad-slot-is-affecting-organic-downloads/#impact_on_download_decisions)
 * [How to test the impact of Google Play’s new branded ad slot for your app or game](https://phiture.com/mobilegrowthstack/how-google-plays-new-branded-ad-slot-is-affecting-organic-downloads/#how_to_test_the_impact_of_google_plays_new_branded_ad_slot_for_your_app_or_game)

## What is the new branded ad slot on Google Play about?

Now, when you search for a brand on the Play Store, the top result can be a paid
ad, followed by organic results below. This means publishers must financially compete
for visibility on their own brand names, making it harder to rely on organic search
as a free resource. If they don’t bid, competitors can easily take the top ad spot,
potentially diverting traffic that would have naturally gone to them.

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Not bidding on own brand

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Bidding on own brand

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## Impact on organic downloads

Through working with our clients, Phiture noticed some clear patterns. Despite the
total download numbers having remained steady, the proportion of organic downloads
has been declining. This shift suggests a growing emphasis on paid downloads, which
complements the traditional focus on organic App Store Optimization (ASO) strategies,
highlighting the need for a balanced approach to enhance overall app visibility 
on the Google Play Store.

[[

Store listing acquisitions per traffic source in the United States, January 2023–
January 2024

 

Moreover, conversion rates for organic traffic have dropped since the new ad slot
was introduced, suggesting that the quality and engagement of organic visits might
be weakening.

 

## Impact on download decisions

Despite these challenges, the impact on actual download decisions seems minimal 
for users with high intent. For example, someone searching specifically for “N26”
is unlikely to download “Revolut” instead, even if “Revolut” appears in an ad.

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Branded ads on the Play Store

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Branded ads on the App Store

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Interestingly, Apple’s approach in the App Store offers more creative freedom. Their
ads can show up to three screenshots of the competitor’s app, which might capture
user attention more effectively than Google’s format that only displays the app 
icon and metadata.

 

## How to test the impact of Google Play’s new branded ad slot for your app or game

To truly understand the impact of this ad slot for your specific app or game, Phiture
recommends testing by turning off all Google App Campaigns (GAC) to analyze the 
cannibalization effect and the true value of organic downloads when they aren’t 
overshadowed by paid ads. We also suggest strategically removing branded keywords
in specific markets to mitigate unwanted ad placements, although Google might counter
this by serving the ads in different markets.

This change in the Play Store’s ad strategy highlights the need for app publishers
to continually adapt their marketing strategies. Balancing visibility through paid
placements with nurturing organic growth has become more complex, requiring a dynamic
approach to App Store Optimization and marketing budget allocation. As the digital
landscape evolves, staying ahead of these changes and adjusting strategies accordingly
will be crucial for maintaining a competitive edge and ensuring sustainable growth
in the app stores.