Apple is now selling the ads in its own channels, among which is the Apple News. This is a huge milestone for Apple. It is now setting up to boost its ad business and grow its exchequer share from its own and its affiliated publishing partners.
In-House Ad Sales Begin on Apple News
Apple News ads have been handled by third-party vendors until now, limiting Apple’s earning potential. Apple now begins to manage its own advertising inventory for Apple News, directly. This change should lead to better revenue for publishers and more opportunities to generate them from their content.
Marketers are also being pitched new ad formats by Apple. It will include unique placements within the Apple News feed and within specific stories. Premium sponsorships at events like the Met Gala and the U.S. Open, along with banner ads, video formats, and carousel ads all feature across a range of products.
A new banner ad placement at the top of the Apple News feed is one standout feature. Additionally, brands will also be able to sponsor certain feeds based on certain topics and promote advertising in the context.
Revenue Sharing with Publishers
Apple’s new approach ensures its publishing partners’ better earnings. Apple will pay 70% of ad revenue generated from the display of ads within any of the publishers’ articles.
Revenue from the ads inside the Apple News feed will vary based on the amount of user engagement their content encourages. In addition, publishers will be able to keep 100 percent of the revenue they earn selling their own ads on Apple News.
Third-Party Vendors Remain in Play
The direct sales strategy of Apple does not kill off third-party vendors completely. Partners like Taboola will still resell any unsold advertising inventory. This marks Apple’s shift away from supplier NBCUniversal as an ad sales partner, which currently ends this year.
Investing in Advertising Talent
Apple has been amassing a savvy advertising team to support its growing aspirations. Industry veterans Renee Appelle, Joseph Cady, and Lauren Fry, who heads up Apple News and Apple TV+ advertising are key hires. As advertising openings are still in the dozens, it’s clear that Apple is intent on growing its footprint.
Ad Revenue Growth Amid Slowing Hardware Sales
As hardware sales started to slow, Apple has started to turn to its services division for growth. The $100bn ($78.3bn) that Apple makes in services revenue each year comes from around 10% advertising. Apple’s advertising revenue is expected to pass $10 billion this year, helped in part by ventures like this new foray into Apple News.
Why It Matters for Publishers
Apple News is already a leading news app in North America, the United Kingdom, and Australia. Yet, it has historically been treated as a marketing tool rather than a revenue engine for publishers. Apple is changing this perception by offering publishers more incentives to contribute high-quality content to an Apple platform — by doing so, Apple is hoping to invest in direct ad sales, as reported by Axios.
The steps that Apple is taking to strengthen its advertising game will be to the benefit of advertisers and publishers alike. They will be able to better customize experiences and potentially earn more from advertising.