Apple has become somewhat of an anti-hero in internet advertising because it has taken such a hard line on privacy and data. Since 2017, Apple has been ripping out pieces of the ad tech ecosystem that marketers relied on to target and measure ads. Apple has removed key data signals, such as third-party cookies on the Safari web browser and the Identifier for Advertisers, IDFA. Apps on Apple’s platform have to ask consumers, through a strictly worded prompt, if they will accept tracking by the developer.
Meta, which owns Facebook and Instagram, has been a leading opposing voice, claiming that Apple’s data policies have harmed its business, estimating a $10 billion hit to revenue this year. Meta also has said that small businesses are harmed because they can’t target ads to local customers and grow. Marketers can’t measure ads effectively, so they reduce spending.
In its job listing, Apple said it was developing a mobile DSP to advance privacy, while also helping marketers reach consumers and helping developers to monetize their apps. “Ad Platforms takes a customer-centric approach to building privacy-preserving and principled advertising products, platforms and algorithms that are secure, performant and innovative,” according to the DSP job post.
Kochava’s Manning said that Apple clearly had plans to expand its footprint in advertising from the start. “[Apple] wants publishers to monetize apps with ads,” Manning said, “in a privacy-safe way, where data exhaust doesn’t get generated.” Apple will likely need DSP and SSP capabilities for that, Manning said.
Therran Oliphant, senior VP of data and technology at Essence Global, the media buying agency within GroupM, characterized Apple’s advertising strategy as audacious, in a Twitter post last week. “I’m sure they’re going to start with Search Ads, but watch how quickly they move to offering targeting products inside App Store apps,” Oliphant said.
Advertisers will “gobble up those ad slots like Joey Chestnut staring at a plate of franks on Independence Day,” Oliphant tweeted.
