Apple has begun selling advertising inventory for Apple News, Axios reports citing “two sources familiar with the matter.” The company is introducing new ad units designed to increase revenue for both Apple and its publishing partners. This move marks a significant development in Apple’s advertising strategy.
Apple has been selling its own ad inventory in search and within its App Store for a while. Until now, it’s relied on third-party vendors to sell Apple News ads, limiting the revenue potential for itself and the thousands of publishers that distribute content on the free version of Apple News.
Publishers will get a 70% cut of the ad revenue sold by Apple within their articles.
They will get a percentage of the ad revenue sold by Apple within the Apple News feed, dependent on engagement with their content.
Apple News publishers will continue to receive 100% of the revenue from the advertising that they sell against their content in the app.
The ads that Apple’s team doesn’t sell will be left for third-party vendors to sell on its behalf.
MacDailyNews Take: In order to maximize profit, it’s key to cut out the middleman.
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