Apple News Ads Go In-House: A $10 Billion Gamble
- Apple News is ditching third-party ad vendors—what’s the catch?
- New premium ad spots for events like the Met Gala? Yep, it’s happening.
- Publishers could finally see bigger payouts—but there’s a twist.
Apple has begun directly selling advertising within its Apple News app, a major strategic shift that could significantly bolster the company’s growing ad business. The move was first reported by Axios and marks a departure from Apple’s longstanding reliance on third-party vendors to sell ads on the platform.
Photo via Axios // Graph: Yearly ad revenues of America's biggest advertising companies, including Google, Meta, Amazon, Microsoft, Apple and Snap. Apple still has plenty of space to grow in the ad revenue business.
A New Chapter for Apple News Advertising
For years, Apple has offered advertising inventory in search and the App Store. However, when it came to Apple News, the company delegated ad sales to third-party vendors, such as NBCUniversal and, more recently, Taboola. Now, Apple is taking charge of selling these ads itself, a decision that industry insiders believe will unlock greater revenue potential for both the company and its publishing partners.
Why this matters:
This pivot underscores Apple’s ambition to grow its advertising arm at a time when hardware sales have slowed. By handling ad sales in-house, Apple can better control pricing, targeting, and distribution while maximizing returns for its partners.
Photo via The Verge // Apple News+ (Apple News Plus) in offline mode.
Key Details
1. Revenue Sharing Model:
- Publishers will receive 70% of ad revenue generated within their articles.
- Revenue from ads within the main Apple News feed will depend on user engagement.
- Publishers will continue to receive 100% of revenue from ads they sell directly.
2. Ad Formats and Sponsorships:
- Apple is introducing 17 ad formats, including carousel ads, video ads, and banner placements.
- Premium sponsorships will be available for high-profile events like the Met Gala and the U.S. Open starting next year.
- Advertisers will also have the opportunity to sponsor specific topic feeds, aligning with relevant content.
3. Expanded Inventory Options:
- A new banner sponsorship unit will feature prominently at the top of the Apple News feed.
- Video ads and other dynamic placements will target broader audiences while offering more engaging ad formats.
Building an Ad Sales Powerhouse
Apple has been quietly assembling a formidable ad sales team to support this initiative. Industry veteran Lauren Fry, who leads advertising for Apple TV+, also oversees Apple News' ad sales efforts. Recent hires include Joseph Cady, a former NBCUniversal executive, and Renee Appelle, a seasoned publishing expert.
The company has been ramping up recruitment, with dozens of open advertising roles listed on its careers site. These hires reflect Apple’s broader push to position itself as a dominant player in digital advertising, a space traditionally led by companies like Google and Meta (Facebook/Instagram/WhatsApp).
A $10 Billion Opportunity
Apple’s advertising business is growing rapidly, contributing an estimated $10 billion in revenue this year, according to third-party data from GroupM and eMarketer. This accounts for approximately 10% of Apple’s services revenue, which includes other offerings like subscriptions to Apple TV+, Apple Music, and iCloud.
“Apple’s transition to in-house ad sales is a logical evolution,” said a source familiar with the company’s strategy. “They’re betting that more direct control will lead to higher margins and more value for their partners.”
Photo via The Mac Observer // Apple News in use on a MacBook Air and an iPhone.
Challenges and Third-Party Collaboration
Despite Apple’s shift to direct ad sales, the company isn’t cutting ties with all third-party vendors. Taboola, which was named a resale vendor earlier this year, will continue to handle unsold inventory. However, Apple’s relationship with NBCUniversal is set to end by year’s close, signaling a broader restructuring of its advertising ecosystem.
What This Means for Publishers
Apple News has long been viewed by publishers as a marketing tool rather than a primary revenue driver. By taking control of ad sales, Apple aims to deliver higher earnings to its publishing partners, potentially incentivizing them to invest more in free content for the platform.
This move could redefine the platform’s role in the digital advertising landscape. As Apple News continues to expand its reach across North America, the U.K., and Australia, the potential for growth is undeniable.
The Bigger Picture
Apple’s move into direct ad sales isn’t happening in isolation. The company has been steadily building its ad empire, leveraging its Apple ecosystem of devices and services to create new revenue streams. From the App Store to Apple TV+, advertising is becoming a core component of Apple’s services strategy.
With this latest shift, Apple has signaled its intent to dominate a space it once left to third-party vendors. As hardware sales plateau, advertising could emerge as a critical pillar of the company’s future growth.
Looking Ahead
Apple’s direct involvement in Apple News ad sales opens the door to new possibilities for advertisers and publishers alike. With premium sponsorships, innovative ad formats, and a growing ad sales team, the company is poised to capitalize on its unique position in the market.
Whether this strategy will pay off remains to be seen, but one thing is clear: Apple is playing the long game in its quest to become a leader in digital advertising.
Recommended by the editors:
Thank you for visiting Apple Scoop! As a dedicated independent news organization, we strive to deliver the latest updates and in-depth journalism on everything Apple. Have insights or thoughts to share? Drop a comment below—our team actively engages with and responds to our community. Return to the home page.Published to Apple Scoop on 19th November, 2024.
No password required
A confirmation request will be delivered to the email address you provide. Once confirmed, your comment will be published. It's as simple as two clicks.
Your email address will not be published publicly. Additionally, we will not send you marketing emails unless you opt-in.