How to Set Apple Search Ads Bids (2025 Guide)
Learn how to set optimal Apple Search Ads bids based on keyword intent, competition, and LTV. Practical bidding strategies with 2025 benchmarks and CPT data.
How to Set Apple Search Ads Bids (2025 Guide)
Bidding in Apple Search Ads isn't guesswork. It's math based on what a user is worth to your app and how likely they are to convert.
The challenge is that most apps set bids without calculating either number. They guess based on what "feels reasonable" or what competitors might be paying, then wonder why their CPA climbs or their ads stop serving.
Effective bidding starts with knowing your unit economics, then layering in keyword intent, competition, and performance data.
Here's how to do it systematically.
Understanding CPT vs CPA
Apple Search Ads Advanced charges per tap (CPT), not per install. This is fundamentally different from Meta or TikTok ads, where you optimize directly for conversions.
CPT (Cost Per Tap): What you pay when someone clicks your ad.
CPA (Cost Per Acquisition): What you pay when someone installs your app.
The relationship between them depends on your conversion rate:
CPA = CPT ÷ Conversion Rate
If your CPT is $2.00 and your conversion rate is 50%, your CPA is $4.00.
If your conversion rate improves to 70%, your CPA drops to $2.86—even if your CPT stays the same.
This means bidding strategy has two levers: controlling CPT and improving conversion rate through better targeting and creative.
The Math: Calculating Your Maximum CPT
Before you set any bid, calculate the maximum CPT you can afford based on your target CPA and expected conversion rate.
Formula:
Max CPT = Target CPA × Expected Conversion Rate
Example:
Your app monetizes at $20 LTV over 90 days. You're targeting a 25% CPA to LTV ratio, giving you a $5 target CPA.
Based on your app store page analytics, your conversion rate from page view to install is 65%.
Max CPT = $5 × 0.65 = $3.25
This is your ceiling. Bidding above $3.25 means you're paying more per install than your target allows.
In practice, you'll want to bid below this to account for variance and leave room for optimization.
Bid Segmentation by Keyword Intent
Not all keywords are worth the same bid. Users searching for your brand name convert at 2-3x the rate of generic category searches.
Most effective bid strategies segment keywords into tiers based on intent and conversion likelihood.
Tier 1: Brand Keywords
Examples: Your app name, misspellings, branded features
Conversion expectation: 70-85%
Bid strategy: Bid aggressively to protect your brand. Set bids 50-100% higher than your baseline.
Why: These users are already looking for you. If you don't show up, a competitor will. The conversion rate justifies premium CPT.
Tier 2: Competitor Keywords
Examples: Competitor app names, branded competitor features
Conversion expectation: 50-65%
Bid strategy: Bid at or slightly above your baseline max CPT.
Why: These users are evaluating alternatives. You're not their first choice, but you're in consideration. Test carefully—competitor keywords can be expensive and deliver lower LTV users.
Tier 3: Category Keywords
Examples: Generic terms describing your app's function ("expense tracker," "meditation app")
Conversion expectation: 40-60%
Bid strategy: Start at 60-80% of your max CPT. Increase only for keywords with proven performance.
Why: These users are browsing, not searching for a specific app. Conversion rates are lower, so you need lower CPT to maintain target CPA.
Tier 4: Discovery Keywords
Examples: Broad match terms, exploratory searches, Search Match
Conversion expectation: 30-50%
Bid strategy: Start conservative at 40-60% of max CPT. Use this tier to identify new high-performing keywords to promote to Tier 3.
Why: Discovery is about learning, not efficiency. Keep bids low until you identify winners.
2025 CPT Benchmarks by Category
Starting bids should be informed by current market rates. Here are average CPT benchmarks from 2024-2025 data:
| Category | Average CPT | CPA Range |
|---|---|---|
| Games | $1.00-$1.20 | $2.00 |
| Productivity | $1.50-$2.00 | $2.00-$2.50 |
| Utilities | $1.50-$2.00 | $2.00-$2.50 |
| Business | $2.00-$3.00 | $2.50-$3.50 |
| Finance | $6.40 | $12.70 |
| Sports | $10.20 | $14.10 |
| Overall Average | $2.50 | $2.90 |
Regional Variations:
| Region | Average CPT | Average CPA |
|---|---|---|
| LATAM | $0.40-$0.60 | $0.50-$0.80 |
| APAC | $1.00-$1.50 | $1.30-$2.00 |
| Europe | $1.80-$2.50 | $2.50-$3.50 |
| United States | $2.50-$3.50 | $3.50-$4.20 |
| Canada | $3.90 | $6.10 |
Source: SplitMetrics Apple Ads Benchmarks 2025, AppTweak (2024 data)
Use these as reference points, not targets. Your actual bids should be driven by your unit economics and performance data.
Setting Initial Bids: A Step-by-Step Approach
Step 1: Calculate Your Baseline Max CPT
Use the formula above based on your target CPA and expected conversion rate.
Step 2: Segment Keywords by Intent
Group keywords into brand, competitor, category, and discovery tiers.
Step 3: Set Starting Bids by Tier
- Brand: 1.5-2x baseline max CPT
- Competitor: 1x baseline max CPT
- Category: 0.6-0.8x baseline max CPT
- Discovery: 0.4-0.6x baseline max CPT
Step 4: Apply Regional Adjustments
If you're launching in lower-cost regions (LATAM, APAC), reduce bids by 30-50% from US baseline.
Step 5: Monitor and Adjust
Give each keyword 50-100 impressions or 7 days of data before making bid adjustments. Increase bids on keywords below target CPA, decrease or pause keywords above target.
Advanced Bid Optimization Tactics
1. Bid to Impression Share, Not Just CPA
If you're being outbid on brand keywords, you might have a low CPA but miss 60% of potential impressions. In these cases, increase bids even if CPA rises slightly—defending brand visibility is often worth a premium.
2. Use CPT Caps to Control Risk
Set a maximum CPT bid cap at 1.2-1.5x your calculated max CPT. This prevents runaway costs in high-competition auctions while still allowing you to compete.
3. Time-Based Bid Adjustments
If your app has time-sensitive usage patterns (fitness apps on Monday mornings, food delivery at lunch), consider dayparting or increasing bids during high-intent windows.
4. Test Bid Floors
For discovery campaigns, set a minimum bid floor to avoid ultra-low CPT keywords that deliver high volume but poor quality. A $0.50-$1.00 floor often filters out junk traffic.
5. Optimize by Device
If iPad users have 2x higher LTV than iPhone users, create separate ad groups and bid 30-50% higher for iPad placements.
Common Bidding Mistakes
1. Bidding the Same Across All Keywords
Brand keywords and discovery keywords require completely different bid strategies. Treating them the same wastes budget.
2. Ignoring Conversion Rate
A $5 CPT isn't inherently expensive if it converts at 80% and delivers a $4 CPA. Focus on CPA, not CPT in isolation.
3. Not Using Negative Keywords
If you're bidding on broad match terms and getting irrelevant traffic, your effective CPT skyrockets. Use negative keywords to filter out non-converters.
4. Changing Bids Too Quickly
Wait for statistical significance (at least 50-100 impressions or 7 days) before adjusting bids. Early noise doesn't reflect true performance.
5. Bidding to "Win" Instead of Profit
Appearing in position 1 for every keyword is expensive and often unnecessary. Position 2-3 often delivers better ROI.
When to Increase Bids
Increase bids on a keyword when:
- CPA is 20%+ below target and impression share is low
- Conversion rate is above 65% and volume is capped by rank
- It's a brand keyword and competitors are winning impression share
- You have budget left and this keyword is your top performer
When to Decrease Bids
Decrease bids on a keyword when:
- CPA is 20%+ above target after 7+ days
- Conversion rate is below 40%
- Search term reports show irrelevant queries triggering your ad
- You're hitting daily budget caps and need to reallocate to better performers
Bid Optimization Cadence
Week 1: Set initial bids, monitor daily, but don't adjust yet. Let the algorithm gather data.
Week 2: Make first round of adjustments based on CPA performance. Pause clear underperformers.
Ongoing: Check performance every 3-7 days. Adjust bids in 10-20% increments, never more than 50% at once.
FAQs
How do I calculate my Apple Search Ads bid?
Calculate your maximum CPT by multiplying your target CPA by your expected conversion rate. For example, if your target CPA is $5 and you expect a 65% conversion rate, your maximum CPT is $3.25 ($5 × 0.65).
What's a good CPT for Apple Search Ads?
Average CPT in 2024 was $2.50 globally, but varies significantly by category and region. LATAM averages $0.40-$0.60, while competitive US categories like Sports and Finance see CPT of $6-$10+.
Should I bid higher on brand keywords?
Yes. Brand keywords typically convert at 2-3x higher rates than category terms, justifying CPT bids 50-100% higher than your baseline. Protecting brand terms prevents competitors from capturing users already searching for your app.
How often should I adjust my bids?
Wait at least 7 days or 50-100 impressions before making adjustments. After initial stabilization, review and adjust bids every 3-7 days based on CPA performance.
What if my CPT is higher than benchmarks but my CPA is good?
Focus on CPA, not CPT. If your conversion rate is strong, a higher CPT is acceptable. The goal is efficient acquisition, not low CPT.
Bidding isn't a one-time decision. It's an ongoing optimization process based on performance data, competitive dynamics, and unit economics. Start with math, adjust with data, and always tie bids back to profitability.
Related Resources
Apple Search Ads Basic vs Advanced (2025 Comparison)
Understand the key differences between Apple Search Ads Basic and Advanced. Learn which platform fits your app marketing goals, budget, and team resources.
How to Optimize Apple Search Ads Budgets for Maximum Efficiency
Learn proven budget optimization strategies for Apple Search Ads in 2025. Allocate budgets across campaigns, manage daily caps, and maximize ROI.
Apple Search Ads for Early-Stage Apps (2025 Guide)
Should you run Apple Search Ads for a new app? Learn when ASA makes sense for early-stage apps, how to start with limited budgets, and what to prioritize.