Apple seems determined to expand its advertising arm, as seen by its decision to offer its own advertising inventory on Apple News, one of the most widely used news apps in North America, Canada, Australia, and the United Kingdom.
Increased advertising options on the News App may give companies another way to reach what is seen to be a highly engaged audience. While iOS still has a smaller global market share than Android, Apple smartphone users contribute more to mobile value in several areas. In a given month, iPhone users spend nine hours more using their smartphone apps than Android users.
Apple, which has already begun selling its own inventory in search and the App Store, has recently taken new steps in the advertising space. Last year, Lauren Fry was appointed to manage the sales of Apple News ads. Fry, the head of Apple TV+ advertising, was formerly in the streaming ad industry.
Apple is trying to recover from a year of declining hardware sales by concentrating on its advertising business. The iPhone 16 has shown promise in aiding Apple’s recovery, with its array of artificial intelligence (AI) features as part of its new Apple Intelligence service. In the fiscal fourth quarter of 2024, Apple’s total iPhone revenue increased by 6%. Nevertheless, the company on a call with analysts shared that it anticipates low to mid-single-digit growth in total company revenue in the current quarter.
Apple’s most recent action is also part of its ongoing efforts to increase customer retention by generating new options. Apple Intelligence is one such initiative, with a strong emphasis on personalized experiences and the ability to streamline routine tasks. Additionally, the tech giant just embraced the Rich Communication Services messaging standard, which facilitates more seamless communication between Android and iPhone devices.
Next year, Apple will offer premium sponsorships for events such as the U.S. Open and the Met Gala. Carousel ads, video ads, and banner placements—including a new sponsorship unit at the top of the Apple News feed—will also be available to advertisers.
Sponsor-specific feeds will be an option for advertisers, allowing them to match their campaigns with relevant topics. The Apple News Feed will soon have a new sponsorship unit with a banner ad at the top.
Ads not sold by Apple will be sold by third-party merchants. Apple is discontinuing its collaboration with NBCUniversal, which it used to rely on to sell advertisements for Apple News, at the end of this year. Apple is thinking about adding more resellers, and Taboola has been identified as a resale vendor for Apple News and Apple Stocks.
Publishers will get a share of the revenue from advertisements in the Apple News feed based on user engagement, as well as 70% of ad revenue from ads sold within their articles. 100% of revenue made from the ads they sell directly in the app will still go to them.
It seeks to boost earnings for both the platform’s publishers and itself. The company wants to increase the revenue from its services, which include iCloud, Apple Pay, Apple Music, and Apple TV+ subscriptions and transactions. According to analysts, 10% of Apple’s $100 billion services business is made up of advertising.
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