Apple expands and strengthens its advertising division. Apple wants to make more money from advertising and, in addition to hiring in this division, one of the strategies with which it intends to achieve the goal is to create a high-level demand-side platform (DSP), based on machine learning. This can be learned from a new job advertisement published by the giant, which is looking for a senior manager to “guide the design of this platform, making it as advanced and sophisticated as possible”.
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Currently the Cueprtino multinational shows advertisements on the App Store and on the News and Stock apps, and has also begun to launch some on the Apple TV + video streaming service during the Friday Night Baseball broadcast.
But Apple wants to do more, as evidenced by the growing hires for the company’s Ad Platforms advertising division, which has increased significantly since the beginning of the year. Since May, the Apple Services group has even had a dedicated executive, Todd Teresi, who works on initiatives related to advertising.
The platform that Apple intends to build for the advertising division would allow advertisers to set up automations that increase the effectiveness of campaigns based on certain indicators governed by machine learning technologies. A system like this, if well designed, would increase the satisfaction of advertisers, who would consequently be incentivized to spend more.
The DSP does other things too: for example, it helps advertisers match the demographics of a given audience, or it can be used to test multiple variations of an ad campaign through dynamic A / B testing. It is also useful for optimizing and increasing spending on advertisements that perform better.
On the other hand, creating a good DSP requires a significant investment in terms of expenditure and hours of engineering development. But once it’s there and working, Apple could also use it to boost App Store ads, for media placements like the aforementioned MLB advertising, and who knows what else.
It is not difficult to imagine the landing of advertisements in other parts of the company’s devices, such as within Spotlight searches, or in other apps such as Maps, perhaps to be shown while looking for a place to reach.
Even in streaming television there are ample opportunities for use, especially since in this period, content supported by advertising is becoming increasingly popular. In this sense, it is possible that Apple is considering the idea of offering a subscription level with advertisements as its competitors (Netflix and Disney + in the first place) are already doing.
However, Apple will have to be cautious with advertising, since it has already attracted several criticisms for having increased its number and at the same time for having cracked down on third-party advertising networks. The introduction of App Tracking Transparency was a win for consumers, but it also gave competing ad networks a hard time, losing “tens of billions of dollars” last year alone.
In recent days, Apple announced the expansion of its advertising program with two new placements for ads on the App Store.
