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Apple Inc. (AAPL): Advertisers and Publishers Angered by Mobile News App Ad Limits

Apple Inc. (AAPL) News App

Apple Inc. was in the news recently when it announced its revamped Apple News mobile app. The News app with take the place of Newsstand and it’s loaded with great features that will make it easier and faster to find and read news. Apple News is billed to launch when the new iOS 9 for the iPhone hits the market. However, New York Post reports that advertisers are not happy with the app.

Apple Inc. (AAPL) News App

It was reported that firms that handle online ads are angry about Apple’s plan of limiting ad formats that can be placed within the contents of the app. More so, they’ll have to obtain approval from Apple before they can launch some ad campaigns on the app. An advertising executive was quoted saying, “[Apple News is] giving us some great ways to distribute our product, but they’re not giving us a lot of ways to monetize it.” Apple’s plan is similar to Facebook’s move that limits ads on its Instant Articles.

Apple News is great for users

Apple News is packed with great features such as new UI, cool graphics, and top-notch navigations tools that will make easier for users to find and consume news. For instance, users can find stories from collated from top news sources on topics that interest them all in the same location. In essence, users need not have multiple news apps for news on different topics that interest them.

Apple also seeks to further draw users into its ecosystem by creating a news app that keeps users engaged. The firm says the News App is “rich with photo galleries, videos, and animation. Articles are optimized for both iPhone and iPad, so you’ll have a great reading experience no matter which device you’re using”.

Another great feature that will set the News app off to a great start is the feature for saving articles into list that can be accessed later. The best part is that the saved articles can be viewed offline, sync them articles with iCloud will make it easy for users to read the same stories across multiple Apple devices.

Apple wants to do news without ads

During the WWDC 2015 that held in June, Apple gave hints about its plans for News App as it sought to hire journalists to curate news articles. It was noted then than Apple’s News App is not likely to succeed because curating news for a market-leading news app that is personalized for users will require Apple to take the info of users.

Apple sees itself a crusader for user privacy; in fact, privacy was a big theme at WWDC; hence, the firm might have a hard time providing custom news without taking user info. It appears that Apple has solved the problem of creating custom news feed without breaking its privacy vows. However, content publishers would not be able to harvest user’s data and they’ll have limited opportunities of showing ads to them. Now, Apple has placed news publishers at a point where they have to forgo a part of their ads revenue in order to reach the large community of iOS users.

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.