Apple will directly sell advertising inventory on its Apple News platform and move away from its reliance on third-party vendors. The shift in business strategy, reported by Axios, signals the tech giant’s growing ambitions in the advertising space as it plans to diversify revenue streams amid slowing hardware sales.
Apple previously relied on NBCUniversal for ad sales, but this partnership will end this year. The company announced its intent to sell a range of ad formats — including in-feed ads, banners, carousel ads, sponsored content, and in-article placements — directly to marketers. It will also offer premium sponsorships for editorially curated content tied to events, such as the Met Gala and the US Open.
Apple News is one of the largest news apps globally, with a presence in all major markets across the Asia-Pacific region. It offers advertisers access to a highly engaged audience — that spends significantly more time on apps than Android users. The platform offers a free version, which is among the most widely used news applications worldwide. In addition to the free version, Apple News offers a subscription service called Apple News+, which was launched in 2019 following Apple’s acquisition of the startup Texture. Apple News+ provides broader access to content from member publishers, especially magazines. At the time of launch, it was marketed as a “Netflix of magazines,” promising a comprehensive service for magazine readers.
Interestingly, once Apple starts directly selling ads on its platform, publishers will receive a 70% share of ad revenue generated within their articles, while revenue from ads placed in the News feed will depend on user engagement. Publishers will still retain 100% of revenue from ads they sell themselves within the app. Any unsold inventory will still be handled by third-party vendors, with Taboola taking over as a resale partner for Apple News and Apple Stocks earlier this year.
Hires and expansion
Apple has been quietly building a robust ad sales team to support this transition. In 2023, the company brought on Lauren Fry, a seasoned executive from the streaming ads space, to lead advertising for both Apple News and Apple TV+. Joining Fry are key hires such as Joseph Cady, a former NBCUniversal executive, and Renee Appelle, a veteran in publishing. The expansion plan in the ad business is evident from the dozens of open advertising roles on its website.
Why should you care?
The timing of this push is interesting. iPhone sales are plunging, with mobile equipment operating revenue for the tech major down by nearly 6% year-on-year in Q3, which includes early iPhone 16 sales. The earnings deflate the idea that the iPhone 16, riding the hype cycle of Apple Intelligence, the capabilities of which are rolling out in underwhelming dribs and drabs, would drive a super-cycle of upgrades.
By taking control of Apple News ads, Apple is taking a big step toward regaining control of its ecosystem and positioning itself as a serious contender in the digital advertising space—one traditionally dominated by Google and Meta. This pivot could help Apple capitalise on its premium user base and further solidify its reputation as a tech giant focused on innovation and growth.
This story first appeared on Campaign Asia-Pacific.
