Apple has entered a new partnership with Taboola for ad sales in its Apple News and Stocks apps. This collaboration marks a significant move for both companies, with Apple outsourcing ad sales to a third party while Taboola secures a prestigious client. Taboola, widely known for its controversial chumbox ads, will now manage native advertising placements in these popular Apple apps.
Despite Taboola’s reputation for less-than-desirable ad content, especially its infamous chumbox ads, there is a reason to believe that the quality of ads in Apple News and Stocks will not suffer. Taboola works with over 9,000 publishing partners and 18,000 advertisers globally. The company employs more than 100 ad moderators to ensure a certain level of control and quality for the ads served through Apple’s platforms. This team of human moderators is expected to maintain, if not improve, the current ad standards within these apps.
Apple’s decision to partner with Taboola reflects a broader strategy to grow its ad business. Marketing analytics firm eMarketer estimates that Apple’s ad revenues will reach $10.34 billion this year. Apple’s expansion into the ad market is not entirely new; previously, the company had an exclusive deal with NBCUniversal for ad sales in Apple News and Stocks in the U.S. and U.K. Now, Taboola’s inclusion expands this reach globally to markets including Canada and Australia.
The partnership highlights Apple’s need for a robust sales operation to enhance its ad business, something that may not be feasible to build internally. The integration of native ads, which blend more seamlessly with app content, aims to enhance user experience without the disruptive nature of traditional ads. This deal not only boosts Taboola’s offerings but also supports Apple’s ambition to diversify its revenue streams beyond hardware sales, thereby providing a buffer against market fluctuations and opening new avenues for growth.
In the context of Apple’s previous endeavors, this move continues its trend of leveraging partnerships to expand its ad capabilities. As Apple looks to optimize its advertising efforts, the choice of Taboola highlights the importance of scale and established relationships with publishers and advertisers. Despite concerns about ad quality, the structured approach of using ad moderators and the potential of Taboola’s Select program for premium publishers provide a promising outlook for this collaboration.
(via Axios)
