Apple has begun selling its own advertising inventory for Apple News, aiming to maximize revenue for itself and its publishing partners. This move marks a significant milestone in Apple's advertising ambitions, as it previously relied on third-party vendors for Apple News ads.
New Ad Units and Sponsorships
- Apple is introducing new ad units within the Apple News feed and individual stories.
- Starting next year, Apple will offer premium sponsorships of editorially curated content for events like the Met Gala and the U.S. Open.
- Additional ad formats include banner placements, video ads, and carousel ads featuring different products.
- Advertisers can sponsor specific feeds within Apple News to align with certain topics.
- A new sponsorship unit will feature a banner ad at the top of the Apple News Feed.
Revenue Sharing
- Publishers will receive a 70% cut of the ad revenue sold by Apple within their articles.
- They will also get a percentage of the ad revenue from the Apple News feed, based on engagement with their content.
- Publishers will continue to receive 100% of the revenue from ads they sell against their content in the app.
Third-Party Vendors
- Ads not sold by Apple's team will be left for third-party vendors.
- Apple named Taboola as a resale vendor for Apple News and Apple Stocks.
- The partnership with NBCUniversal will end at the end of the year, and Apple is considering other resellers.
Financial Impact
- Apple's services business, including advertising, drives roughly $100 billion in revenue annually.
- Advertising is estimated to contribute around $10 billion this year.
- Apple's investment in its ad business comes as hardware sales have slowed.
Future Outlook
- Apple News is popular in North America, the U.K., and Australia, but publishers have viewed the free version mainly as a marketing tool.
- By investing in direct sales, Apple aims to increase ad revenue for its publishing partners, encouraging more content on the platform for free.
