Apple begins selling News ads directly to advertisers
Apple is exploring other revenue streams amid slow hardware sales growth
Apple has started selling its advertising inventory for Apple News. The company is moving away from its previous reliance on third-party vendors, two sources familiar with the effort told Axios.
How Apple will sell ads to advertisers
Ā Apple will sell premium sponsorships for events like the Met Gala and the U.S. Open from next year. Advertisers will also have access to ad formats, including carousel ads, video ads, and banner placements, such as a new sponsorship unit at the top of the Apple News feed, per Axios.
Advertisers will have options to sponsor specific feeds, aligning their campaigns with relevant topics. A new sponsorship unit featuring a banner ad will soon appear at the top of the Apple News Feed.
Third-party vendors will sell any ads Apple didn't sell. Apple previously relied on NBCUniversal to sell ads for Apple News but is ending that partnership at the end of the year. Taboola has been named as a resale vendor for Apple News and Apple Stocks, and Apple is considering bringing on additional resellers.
How Apple intends to share revenue with publishers and advertisers
Publishers will receive 70% of ad revenue from ads sold within their articles and a share of revenue from ads within the Apple News feed based on user engagement. They will continue to keep 100% of revenue from ads they sell directly in the app.
Axios reports that it aims to increase revenue for itself and the publishers using the platform. The company is looking to boost its services revenue, which includes subscriptions and transactions from Apple Music, Apple TV+, iCloud, and Apple Pay. Analysts estimate advertising is about 10% of Appleās $100 billion services business.