Apple is creating a team to manage the demand platform (DSP)

Apple Just Issued A Striking New Blow To Facebook

#Apple is making a major move into advertising just 18 months after releasing a bunch of iPhone privacy features that cripple #Facebook’s ability to track users. This month, an article in Digiday revealed how Apple is building a team to manage a #demand side platform (DSP).

The job ad described how the iPhone maker wants to “drive the design of the most privacy-forward, sophisticated demand side platform possible,” Digiday wrote.

This is an important move for Apple because a DSP is a “core part of an ad stack for any company with designs on winning more media dollars,” according to Digiday. For people who aren’t familiar, a #DSP is a platform that allows advertisers to use automation to boost media campaigns, often leading them to spend more money.

At the same time, it’s been confirmed that Apple is offering more advertising placements in its #App Store, in the Today tab and individual app pages. Meanwhile, Apple services chief Todd Teresi has been instructed to focus on advertising opportunities.

The iPhone maker’s new advertising moves indicate a shift in how Apple makes its revenue. Hardware alone won’t cut it—and advertising can be lucrative when times are hard. Just look at what’s happening with streaming platform Netflix, which is considering an ads-based model amid falling subscriber numbers

A major blow to Facebook

Apple’s move into advertising is a major blow to Facebook. The #iPhone maker has spent the last couple of years making it harder for companies such as Facebook—which rely on tracking across other apps and websites—to operate. While Apple has been pushing privacy as a #USP, it has allegedly been building its own ads business in the background.

Apple has tried to move into advertising before with iAd, which failed in 2016 after a lack of demand. But times are very different now, with consumer appetite for change leading advertisers to seek privacy-first ways to sell products. This is where Apple has a strong #play and reputation.

Apple’s Facebook-breaker feature, App Tracking Transparency (ATT), asks people to opt-in to tracking via the identifier for #advertisers (IDFA). Many iPhone users have opted out of this type of tracking, and it’s estimated Facebook could lose over $12 billion as a result.

It comes as browser makers seek ways to move away from third-party cookies. Google has been suggesting alternatives such as the disastrous FLoC and now Topics, but the tech giant recently announced a delay in the move away from cookies to help advertisers transition.