Apple Takes the Reins on News Ads!

The Story: Apple is taking a bold step by directly selling advertising on its News app, leaving behind its reliance on third-party vendors. As part of this initiative, Apple will pitch new ad formats to marketers while ensuring publishers secure a 70% cut of the revenue. This change could improve ad quality and revenue generation, benefiting both Apple and content creators.

The Details:

• Apple has started selling its own ads in the News app, introducing various ad units designed to enhance revenue opportunities for itself and publishers.

• Publishers will earn 70% of the revenue from the ads Apple sells directly within their articles, while also retaining full revenue from ads they sell independently.

• The company is set to offer premium sponsorships for curated content linked to major events like the Met Gala and the U.S. Open starting in 2025.

• New ad formats available will include banners and video ads in multiple styles, enriching the advertising landscape of the app significantly.

• As Apple expands this part of its services, its advertising revenue, estimated at $10 billion this year, will be crucial to its growth strategy amidst slowing hardware sales.

Why It Matters: This shift marks a significant change in the advertising game for Apple News, which has been viewed more as a marketing platform than a serious revenue driver by publishers. By taking control of ad placements, Apple aims to uplift ad quality and enhance revenue opportunities for its publishing partners, potentially leading to richer content being shared on the platform. For creatives in journalism and digital content, this could herald a new era of monetization that allows for more investment in quality reporting and storytelling.