Dive Brief:
- Apple has begun selling its own advertising inventory for Apple News for the first time, Axios reported. Previously, the tech giant was relying on third-party vendors to sell ads within its News product.
- Apple next year will sell premium sponsorships of editorially curated content for events like the Met Gala. Additionally, the News team is pitching banner placements and video ads, and advertisers will also be able to sponsor specific News feeds.
- Publishers will earn a 70% cut of the ad revenue sold by Apple within their articles, per Axios. The move could help Apple widen its advertising revenue stream and bounce back following what the company anticipates will be a modest end-of-year period.
Dive Insight:
Apple appears intent on growing its advertising arm, as reflected in the move to sell its own advertising inventory on Apple News, which is among the most popular news apps in regions including North America, Canada, Australia and the U.K. Apple ad revenue worldwide is expected to reach nearly $11 billion this year, up from $8.9 billion last year, per eMarketer.
The expansion of advertising opportunities on the News App could allow brands another avenue to tap into what is often regarded as a highly engaged audience. While Android still commands a larger share of the global mobile market than iOS, Apple smartphone users account for more mobile value in some ways. Notably, iPhone users engage with apps on their smartphone for nine hours more in a given month than Android users.
Apple, which has already been selling its own inventory in search and its App Store, has made other strides on the advertising front recently, including the appointment of Lauren Fry to oversee Apple News ad sales last year. Fry, who previously worked in the streaming ads space, also leads advertising for Apple TV+.
A focus on its advertising business comes as Apple attempts to bounce back from a year of slowing hardware sales. The iPhone 16, which promises a slew of artificial intelligence (AI) features as part of the company’s new Apple Intelligence offering, has shown signs of potential in helping Apple recover. Overall iPhone revenue grew 6% in Apple’s fiscal fourth quarter of 2024. Still, the company on a call with analysts shared that it expects total company revenue to grow low to mid-single digits during its current quarter.
The latest move from Apple also comes as it continues to focus on creating more opportunities to help retain its users. Apple Intelligence is among those efforts, boasting a deep focus on personalized experiences and the ability to simplify everyday tasks. The tech giant also recently adopted the Rich Communication Services messaging standard, which makes for smoother communication between iPhone and Android devices.
