“The hope, from both publishers and Apple, is that Apple’s giant installed base of iPhone and iPad users will naturally gravitate to the app, and then like the way the stuff reads within it,” Kafka reports. “‘It’s not a hugely complicated application. What they bring to it is massive distribution, and they’re giving publishers the ability to present their brands, in a way that feels like those brands,’ said Troy Young, who runs digital for Hearst, one of Apple’s initial launch partners. ‘We like it when we tell stories in ways that are true to our brands.'”
“Publishers are also happy about Apple’s terms, which allow them to keep 100 percent of the ad revenue for ads they sell on their own and 70 percent of the revenue for the backfill inventory that Apple will sell,” Kafka reports. “Publishers will also get credit from Web auditor ComScore for the stories that users view, so they don’t need to worry about Apple cannibalizing their audience numbers.”
Read more, and see the video, in the full article here.
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