Full transparency: I’m an Android user.  I’m the annoying dot in the group chat that messes things up for everyone. So, this blog might have a hint of bias in it because I, unlike Apple, am fully transparent. 

What do I mean by that? Apple secretly (maybe accidentally) let it slip that they are building a DSP. This was uncovered because of a job posting—seeking to fill a product role centered around building a mobile-first DSP and an attribution framework. The posting dates August 2022. Since then, Apple has been radio silent. 

The big question is, how does this affect the already overcrowded space of demand side platforms? Here’s how I can picture the rollout…

One of the key differentiators for Apple in programmatic advertising is its commitment to user privacy. Apple has been vocal about its dedication to protecting user data, with initiatives such as Intelligent Tracking Prevention (ITP) and the App Tracking Transparency (ATT) framework. By integrating these privacy-centric features into its programmatic advertising platform, Apple could attract advertisers who prioritize ethical data practices and are looking for a more privacy-focused alternative. This approach aligns with Apple’s overarching brand image of putting user privacy at the forefront of its services and products.  

Now…let’s get real. Apple is not rolling out a new advertising product for those who care about data privacy out of the kindness of its heart. From a consumer standpoint, Apple appears to care about privacy and has publicly been at the forefront of consumer privacy. From a (speculative) business standpoint, the consumer privacy narrative was born because Apple realized that Meta and Google have an overwhelming amount of market share of advertising space—even though Apple itself owns a significant portion of the hardware market share by which ads are delivered. Now, Apple wants its own piece of the pie.  

Apple’s entry into programmatic advertising is bolstered by its vast ecosystem and interconnected devices. With a strong presence in the mobile, tablet, streaming TV, and smartwatch markets, Apple can offer advertisers access to a wide range of users across different platforms. This extensive reach provides advertisers with valuable opportunities to target specific demographics and tailor their campaigns to reach Apple device users. Additionally, Apple’s ability to integrate its programmatic advertising platform with other services such as Apple News and Apple TV+ further enhances its appeal to advertisers looking for comprehensive and cross-platform advertising solutions.

The ironic thing is this speculative advertising platform would entirely defeat the purpose of the original privacy narrative. While this is maybe not a great move from a consumer standpoint, the potential value proposition for advertisers is real. There is a huge upside to targeting consumers based on their Apple product consumption habits, and it will be interesting to see how far on either side of the privacy line they land. Apple may have to decide who to appease—consumers or advertisers!