Apple’s DSP establishment plan, revealed from the company’s recruitment information: “They have used their own assets and built an advertising business in secret” | DIGIDAY[Japanese version]

Apple ruined the digital advertising business, but left fertile ground for their own ad spend-focused businesses to launch. If the latest hiring is correct, the company is building a DSP (demand-side platform).

Specifically, Apple is looking for a senior DSP manager in its advertising platform division. According to the job posting, the job will “lead the design of state-of-the-art DSPs with advanced privacy protection.” The company further states that applicants should have experience building mobile-centric DSPs and have expertise in optimizing “mobile campaigns using measurement and attribution.”

Experienced candidates applying for this position must have ‘8+ years of experience’ in technical and product management and a proven track record of having been involved in the launch of ‘advertising related products to audiences in the hundreds of millions’. I need a record.

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Apple (allegedly) not interested in ad tech

Forming a DSP is an expression of interest in any advertising company. This is especially true for companies like Apple, which have achieved extraordinary growth by severely restricting other companies’ ability to grow within their own ecosystem. DSPs are a core component of the ad tech stack for any company looking to capture more ad dollars. Technology, or more precisely software, enables marketers to use automation to deploy their ads. Process automation is important because it makes it easier for marketers to deploy and manage campaigns. That could lead to them spending more money on advertising.

“Our platform uses technologies such as campaign management, bidding, incrementality, dynamic creative optimization, matching, auctions, and experimentation to operate ad auctions that connect supply (customers) and demand (advertisers). We will focus on the public component and strongly protect customer privacy throughout,” Apple said in its post.

Will the DSP that Apple plans to establish specialize in running ads on properties owned and operated by Apple (such as the App Store), or will it focus on advertising inside the myriad of iOS apps and even the mobile web? It’s not yet clear if the company is looking to advertise on third-party properties.

Apple has not confirmed the creation of a DSP, nor has it provided any further information on how the move will affect its overall strategy for its advertising business. But job postings are a clear signal of the company’s intentions. So far, Apple has maintained (at least publicly) that it has no interest in building ad tech. After all, the company’s business model revolved around targeting rather than welcoming advertising.

vast walled garden

But times change. Looking at Apple recently, it’s clear that the idea that the company is against online advertising needs to be revised. With the establishment of (this time) DSP, the transformation was decisive. No company would embark on this kind of ad tech buildup unless they were seriously considering a bold strategy for getting ad dollars. It takes too much time and money to proceed with just an idea.

“Over the years, Apple has built a vast walled garden of interlinked products and Apple services,” said Paulina Klimenko, chief growth officer at PubMatic. “User data is what ties all these products and services together and creates a seamless customer experience. For Apple to create its own DSP is a logical next step in this evolution. Leveraging the scale and ecosystem assets of the company, we have built an advertising business in secret.”

With its own DSP, Apple will have complete control over how and where data is used, preventing data of tremendous value from leaving the walled garden. right.

If you’re still skeptical of Apple’s long-term plans for its advertising business, the latest report should make perfect sense.

“Ambition” to expand the advertising business

Unusually for a company notoriously reluctant to disclose information, Apple recently announced that it will offer new opportunities for companies that want to promote their products inside the App Store.Statement for mediaannounced as

According to the plan, the two new ad slots will be presented on the App Store with promotional notices. One is presented with Apple’s editorial content on the “Today” tab, and the other is presented on the app’s product page under the “You Might Also Like” tab.

“Apple Search Ads offers developers of all sizes an opportunity to grow their business,” Apple said in a statement.

The text continues like this. “Like all of our advertising products, this new inventory is built on the same foundation: Only content approved for App Store product pages is shown, and the same rigorous Adhere to strict privacy standards.”

Officially, Apple has long acted as an advocate for user privacy. That’s as serious as the marketing industry, especially anonymous intermediaries, have been pushing a multi-year project aimed at overcoming the ease of software-based targeting.

The company started by deploying Intelligent Tracking Prevention (ITP), effectively disabling third-party cookies on the Safari browser, and rolling back mobile advertising identifiers (MAIDs or IDFA) in the iOS ecosystem.

Already announced to some companies at Cannes?

As a recent move, AppleApp Tracking Transparency (ATT)■ Changed links to Japanese URLs ■ We have introduced a series of tools such as tools, with which the company entrusts users with opt-in/opt-out choices and allows users to control all advertising experiences. It is explained that there is

According to sources (all of whom requested anonymity given Apple’s reluctance to publicize its preliminary plans), Apple will begin hiring efforts in its advertising platform division in 2022 and beyond. A tendency to strengthen was observed.

The division’s sales are usually combined with Apple TV+, Music, games, etc. as “service sales” in earnings reports.until June of this yearthird quarterThe company’s service sales were $ 19.6 billion (about 2.646 trillion yen).

The announcement of new Apple Store ad slots and the hiring effort to establish a DSP both happened less than a month after the Cannes Lions. According to multiple sources,Apple shows unusual presence at Cannesheld a secret meeting with media executives.

[Original:Apple is building a demand-side platform]

Ronan Shields (Translated by Tomoyuki Matoba/Galileo, edited by Shohei Wakeshima)