Apple has begun selling its own advertising inventory for Apple News for the first time. The tech giant is no longer relying on third-party vendors and is now pitching marketers on ad units within the News feed and individual stories. Previously, Apple relied on third-party vendors to sell ads within its News product.
Next year, the company will sell premium sponsorships of editorially curated content for events like the Met Gala. Additionally, the News team is offering banner placements and video ads, and advertisers will be able to sponsor specific News feeds. Publishers will earn a 70% cut of the ad revenue sold by Apple within their articles.
This move could help Apple widen its advertising revenue stream and offset what the company anticipates will be a modest end-of-year period. Apple appears intent on growing its advertising arm, as reflected in its move to sell its own advertising inventory on Apple News in regions including North America, Canada, Australia, and the U.K. This expansion could allow brands another avenue to tap into what is often regarded as a highly engaged audience.
Apple’s new ad strategy
Apple smartphone users, for example, account for more mobile value in various metrics and spend notably more time on their devices compared to Android users. Apple has already been selling its own inventory in search and its App Store and has made other strides on the advertising front recently. This includes the appointment of Todd Teresi, who previously worked in the streaming ads space and now leads advertising for Apple TV+.
A focus on its advertising business comes as Apple attempts to bounce back from challenges over the past year. The iPhone 16, which promises a slew of artificial intelligence features, has shown potential in helping Apple recover. The company expects total revenue to grow by low to mid-single digits during its current quarter.
Apple’s efforts also extend to creating more opportunities to retain its users. Apple Intelligence, the company’s generative AI offering, is among those efforts, boasting a deep focus on personalized experiences and the ability to simplify everyday tasks. This expansion into direct ad sales represents a significant move for Apple as it continues to develop its advertising capabilities and create new revenue streams.
