There's little question that The Trade Desk (TTD 4.77%) is the industry-leading incumbent in programmatic advertising. The company upended the status quo by pulling back the curtain on digital advertising, developing transparent pricing that made it the first choice among ad agencies and individual advertisers alike. In doing so, The Trade Desk carved out a lucrative niche for itself in the ad-tech space, one that seemed unassailable -- until now.

Enter Apple (AAPL 0.36%). Recent moves by the iPhone maker suggest the company has its sights set on establishing a beachhead in the digital-advertising space, which would be a natural extension of the company's existing business. Unfortunately, depending on which direction Apple takes, this could put the company in direct competition with The Trade Desk, which should have the company shaking in its boots.

Hidden in plain sight

A series of recent job postings by Apple provide keen insight into the company's plans. Apple is looking for a senior product manager for a demand-side platform (DSP), which allows ad agencies and advertisers to buy digital-advertising inventory. In true Apple fashion, however, the company is focusing on consumer privacy. 

The successful candidate will "drive the design of the most privacy-forward, sophisticated demand side platform possible." Apple wants a DSP "that enables advertisers (sourced by Apple) to find opportunities to showcase their products and services via ad placements in Apple services."

It doesn't stop there, however. The ad-exec will "lead new product definition and business plans with partners across peer groups and organizations."

Furthermore, Apple is looking for a candidate with "experience with building a mobile demand side platform," as well as "experience optimizing mobile campaigns using measurement and attribution." The successful candidate will have "eight plus years experience in product management and technical architecture of mobile advertising platforms."

Apple is also looking for a senior manager to work for its ad-platforms project management team. The new hire will need at least 10 years' experience in project management, as well as three years background in the advertising technology. 

Both job postings are dated Aug. 3, 2022, so Apple is still early in the process.

What it could mean

At this point, we don't know the extent of Apple's plan for its DSP. These postings come on the heels of a decision by Apple to expand its advertising business by increasing advertising in its App Store. These additional ad placements will help developers market their apps, though they'll have limited control about where those ads end up. 

The further push into advertising could simply be a way for the company to expand advertising solely within the realm of Apple's ecosystem. It could also mean that Apple is following in the footsteps of Netflix and others in the streaming video space, and plans to develop a lower cost (or free) ad-supported version of its streaming offering, Apple TV+.

Of greater concern to The Trade Desk, however, would be if this is a stepping-off point for Apple into the broader realm of digital advertising. After developing a platform to suit its own needs, the company could eventually expand even further, becoming a de facto competitor to The Trade Desk.

Apple is always looking for ways to expand its services business. While the company has primarily focused on consumer-facing services, it isn't a stretch to believe it could one day reach further -- and a frontal assault on the ad-tech business could be on the horizon. 

A history of disruption

This wouldn't be the first time Apple has disrupted digital advertising. In an update to iOS 14 last year, Apple required iPhone users to explicitly consent to being tracked across websites and apps they use, a move that caused problems for Facebook parent Meta Platforms. In its second-quarter earnings call, CEO Mark Zuckerberg continued to bemoan the "signal loss from Apple's iOS changes."

At this point, it's all supposition and innuendo. The job postings don't provide enough information to support a conclusion one way or the other. We'll have to wait and see what develops from Apple's further foray into digital advertising.

That said, if I was an executive at The Trade Desk, I might be a little worried right now.