Digital Gabe
Cutting Edge Commentary On All Things Media

If You Can’t Sell Your Ad Space Just Rent It Out

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For all of Apple’s brilliance as a creator of game-changing devices they’re notoriously bad at selling ads – just think back to iAd’s shuttering in 2015 if you need a proof point.  But in business recognizing you have a weakness and then partnering with someone who can help your deficiency sometimes makes for a solid strategy.

That’s exactly what Apple is trying to do by allowing Google to sell ads in 3rd party content which appears in the Apple News feed.  Google will use its DoubleClick for Publishers (DFP) platform to populate ads programmatically within this content, and rev share some of the proceeds back to Apple.  This maneuver solves two key challenges for Apple.  First it helps them monetize Apple News.  To be honest, it’s amazing that a platform with 60M MUVs isn’t already generating revenue, but that goes to show you just how disinterested Apple has been in ad sales up to now.  The other benefit to opening up the DFP pipeline is that it incentives publishers to put more content on Apple News since they can now monetize it.  Again, seems like a no brainer.

I’m guessing this partnership will benefit all parties.  Which leads me to wonder what other parts of Apple’s content ecosystem they could look to monetize next?  Maybe Apple Music?  Hmmm . . .

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