In a significant move, Apple has decided to manage advertising sales for Apple News internally. This marks a departure from third-party ad vendors, aimed at enhancing revenue streams for Apple and its publishing partners.
Expanded Advertising Options
By managing ad sales directly, Apple plans to introduce innovative advertising formats. These include carousel ads, banner placements, and video ads across 17 formats. Premium sponsorship opportunities for events like the Met Gala are also set to launch in 2025.
Advertisers will benefit from targeting specific audience segments by sponsoring topic feeds, making the platform more versatile and appealing. This direct management is expected to optimize Apple’s ad revenue while improving earnings for content publishers.
Revenue Sharing Model Explained
Apple’s new model offers publishers a 70% share of ad revenue, while Apple retains 30%. Earnings will depend on the engagement level of published content. This approach eliminates intermediary costs, allowing publishers to benefit more directly from their work.
Collaboration with Third Parties Continues
Despite bringing ad sales in-house, Apple will maintain partnerships with third-party vendors like Taboola. These vendors will manage ad spaces left unsold by Apple’s team, ensuring a balanced approach and maximizing ad inventory.
A Growing Advertising Sector
Apple’s advertising division continues to expand, evidenced by the numerous job postings in the sector. With projected advertising revenue reaching $10 billion by the end of 2024, this segment is becoming increasingly vital to Apple’s overall services ecosystem.
Strategic Implications
This shift not only strengthens Apple News’ position in the digital advertising space but also signals Apple’s commitment to optimizing its services. The move provides advertisers with innovative tools, ensures better monetization for publishers, and paves the way for higher profitability in a competitive market.
