Home Now Serving Mobile Apple Just Created A Strong, Vertical Ad Network

Apple Just Created A Strong, Vertical Ad Network

SHARE:

Bob WalczakNow Serving Mobile” is a column focused on the audience-buying opportunity in mobile advertising.

Bob Walczak is the former CEO of mobile ad network Ringleader Digital and currently runs Bump Equity, LLC.

The latest change in Apple IOS 5 of eliminating the use of the UDID is a huge shift for the mobile application ad market. What this move means is that Apple has changed app targeting from a 3rd party cookie model to a 1st party cookie model. The difference between 1st and 3rd party cookies is that a 1st party cookie can only be used across a single site, or in this case application, and a 3rd party cookie can track usage across multiple applications.

A UDID is a Universal Device Identifier; the most important word in that acronym is Universal, meaning that every application on a single device shares the same ID. From an advertisers or ad networks prospective, a 3rd party cookie is relevant for tracking conversions and for building deep behavioral profiles of a user. The latest wave of audience targeting relies completely on 3rd party cookies. To go one step further, this means all of the high value, hyper-targeted advertising gets eliminated.

The privacy aspect of what they’ve done is increase user privacy and security in applications. The reason is that a UDID has one major difference between it and a 3rd party cookie – a 3rd party cookie can only be read by the platform that sets it, but a UDID is the same for every platform that accesses it. Think about this subtle but significant difference as having a random ID verses a phone number that everyone knows. In the privacy world a phone number is classified as Personally Identifiable Information (PII), which is strictly off limits for ad targeting.

Apple did the right thing by eliminating access to the UDID, but they should have replaced it with functionality more closely related to a true 3rd party cookie. Regarding whether or not Apple will still have access to the UDID, I’d say “yes,” and their justification will be that every carrier knows every device on their network so why can’t Apple know its devices. The difference is that carriers don’t know unique devices on other carrier networks, the way Apple will know all Apple devices across carriers. At the end of the day what Apple has done is created a very strong vertical ad network advantage for iAd, allowing them to be the exclusive provider of high value, hyper targeted advertising.

Follow AdExchanger.com (@adexchanger) on Twitter.

Tagged in:

Must Read

Taking A Look At Tuple, A New Entrant To The Ossified DSP Market

Tuple is entering the DSP market at a strange and tense moment for third-party ad tech. “There’s just so much animosity” between the programmatic buy and sell sides, says Founder and CEO Doug Lauretano.

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

AppLovin’s Play To Reach Non-Gaming Advertisers

Gaming apps are filled with ads for more gaming apps. Why not other advertisers? We go inside AppLovin’s play to bring non-gaming advertisers into the fold.

Andrea Kwiatek, director of strategic partnerships at Goodway Group

Agentic AI Is A Shiny New Object, But Supply-Path Optimization Is A Reality Check

AI can help make media buying more efficient. But it’ll take some more time before AI agents are a seamless part of the modern media buying process, says Goodway Group’s Andrea Kwiatek, director of strategic partnerships.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Pinterest Names Jason Fairchild GM Of Programmatic And Affiliate

Pinterest expanded tvScientific CEO and Co-Founder Jason Fairchild’s title to general manager of programmatic and affiliate. The title upgrade comes less than a year after Pinterest acquired the performance-focused CTV ad startup.

Liftoff’s Message For Investors During Its First Earnings Call: We’re Not Just A Gaming Company

Liftoff used its market debut to school investors on mobile ad tech – and make the case that travel, finance and shopping apps could be its next growth engine.

Benoit Vatere, chief media & digital commerce officer, Liquid Death

Murder Your Thirst And Measure Everything

Liquid Death is all jokes and dark humor on the surface, but the canned water brand’s chief media and digital commerce officer, Benoit Vatere, takes measurement deadly seriously. He’s tackling one of the gnarliest problems in CPG: proving that media actually moves product off the shelves.