Apple is advancing its advertising ambitions by directly selling ads within the Apple News app, according to a report from Axios. This strategic shift leverages Apple News' extensive reach to expand its services business and create a lucrative new revenue stream. The move also reduces Apple’s reliance on third-party ad vendors, allowing it to take greater control of its ad ecosystem.
Axios reported that publishers will earn 70% of the revenue from ads sold by Apple in their articles while keeping 100% of revenue from ads they sell independently. Additionally, publishers will receive a portion of revenue from ads displayed in the News feed based on user engagement. Apple has also introduced premium sponsorship opportunities for high-profile editorial content, such as coverage of major events like the Met Gala and the U.S. Open.
This development builds on Apple’s steady expansion into advertising. In 2022, the company began selling ads in the App Store’s "Today" tab, boosting app visibility. Within Apple News, new ad formats like carousel ads, banners, and video placements are being introduced, along with sponsorship options for curated feeds and prominent ad positions in the News feed.
As Apple invests in its ad business, it has also restructured partnerships, recently naming Taboola as a resale vendor for Apple News and Stocks ads while parting ways with NBCUniversal.
This direct ad sales approach not only strengthens Apple's position in the digital advertising market but also incentivizes publishers to invest more in the platform, potentially enhancing both user engagement and overall ad revenue. Analysts estimate that Apple’s ad revenue could reach $10 billion this year, contributing to its $100 billion services business.
