Apple shifts advertising strategy, takes control of ad sales for Apple News

Apple has started directly selling its advertising inventory for Apple News, marking a significant shift in the company's advertising strategy. Previously, it relied on third-party vendors for ad sales on Apple News, but with this change, the tech company is looking to maximise revenue for itself and its publishing partners.

The company is introducing new ad units, including premium sponsorships for events like the Met Gala and U.S. Open, banner ads, and video ads. These ads will appear in the Apple News feed as well as within individual stories. Publishers will receive 70% of the revenue generated from ads sold by the company, while maintaining 100% of revenue from ads they sell directly.

The company has been expanding its ad team to support this effort, including key hires like Lauren Fry, who leads advertising for Apple TV+ and Apple News. The company also worked with ad tech firm Taboola, which will continue to serve as a resale vendor. This shift comes as Apple seeks to grow its advertising business, particularly as hardware sales slow. The company's ad revenue is expected to reach $10 billion this year, representing a significant part of its growing services division.

Apple's direct sales initiative aims to increase ad revenue for its partners and incentivise them to invest more in the free version of Apple News, potentially leading to more content being shared on the platform.