## Apple Monetizes News App with Direct Ad Sales
Apple is further solidifying its presence in the digital advertising arena by taking the reins of ad sales within its Apple News application. As reported by Axios, the tech giant will now directly sell advertisements that appear within the app, offering publishers a 70% revenue share for these Apple-sold placements. Importantly, publishers retain full control and 100% of the revenue generated from ads they sell independently within their articles.
### Expanding Apple’s Advertising Footprint
This move represents a significant expansion of Apple’s advertising strategy, which has been steadily gaining momentum in recent years. The company’s foray into app store advertising, launched in 2022 with ads in the App Store’s “Today” tab, provided a glimpse into its ambitions. By enabling developers to broaden their reach through promoted apps, Apple established a new revenue stream and signaled its intent to become a more prominent player in the advertising ecosystem. Now, with direct ad sales in Apple News, the company is poised to further capitalize on its user base and bolster its services revenue. This strategy aligns with the broader industry trend of tech companies diversifying revenue streams beyond hardware sales. Similar strategies can be observed with other major tech players, further emphasizing the growing importance of advertising revenue in the tech sector.
### A New Revenue Stream for Apple News
The introduction of direct ad sales within Apple News has the potential to significantly impact Apple’s services revenue. By controlling a portion of the ad inventory, Apple gains a more direct influence over the revenue generated within its news platform. This strategic move allows Apple to leverage its vast user base and further monetize its news offering. While the exact financial implications remain to be seen, this expansion into direct ad sales underscores Apple’s commitment to growing its services business. For more in-depth information on ad placement and other details, refer to the original Axios report.
