> Theres no scenario where apple can be profitable on this spend when they can only ever get 30% of what the consumer spends.
I mean, maybe if tinder's margin was less than apples, but that's pretty unlikely.
I mean, maybe if tinder's margin was less than apples, but that's pretty unlikely.
If they’re both bidding on the same keywords, which they are, then the price of the keywords is the same to each of them. It’s an auction, so whoever bids the most will win the auction. The developer can spend up to $97 to bid on that keyword and still be profitable or at worst break even, while apple can only spend up to $30 to stay profitable or break even. So if Apple is winning auctions, it means they’re spending more than the developer, despite having less than half the purchasing power of the developer. So they’re spending negatively almost no matter what.