What does Apple’s DSP mean for the advertising industry?

What is happening? 

Apple is reportedly on the hunt for Ad tech specialists to create a new DSP, with the latest job adverts recruiting professionals who will be tasked with creating “the design of the most privacy-forward, sophisticated demand side platform”. A DSP is a platform that enables advertisers to automate buying across digital media channels such as display, video audio, and connected TV. Media agencies and markets utilize DSPs because they can bid on media in real-time, cost efficiently to drive campaign results. 

Why would Apple want to create its DSP? 

The creation of an Apple DSP would mean that advertisers who use it are given access to Apple’s walled garden – the millions of data points that exist as a result of Apple’s market domination, the millions of OS devices, connected products, and services. 

The creation of a DSP means a large amount of investment and engineering hours, however, a DSP for Apple products could see a flow of Apple ads into other products such as Spotlight, Maps, or even Apple News. 

With streaming competitors such as Netflix and Disney+ introducing ad-supported content soon, probably, Apple TV will also move to an ad-supported model, with inventory available on the anticipated DSP. 

What does this mean for other DSPs in the market? 

Whilst it is unclear whether the DSP will leverage inventory across the entire open web or purely across the Apple stack, there is opportuntiy for marketers to tap into inventory with IOS devices and Apple products accounting for a significant portion of the digital world. Advertisers with access to this data will indeed have an upper hand, with this valuable data previously only accessible in their walled garden. 

An Apple DSP will no doubt mean increased competition in an already saturated market, however with its extensive consumer data, previously inaccessible to marketers across an automated bidding platform, we expect to see other key players such as Google, The TradeDesk, and Media Math, innovate ways to stay front of mind as the DSP of choice for media agencies and marketers. If you want to learn more about and what it can mean for your business, reach out to an ADMATICian today!