Digital Advertising on AWS Dmitri TchikatilovAdTech BD, AWSdmitrit@amazon.com

Agenda

1. Goals and how AWS works with AdTech2. Observations and latest trends3. Industry solutions approach4. Examples

What's dangerous is not to evolve...

Jeff Bezos

Goals for Industry Business Development

Better understand our customers business and technical challenges.

Collect the data and draw conclusions how AWS can help with solutions.

Evolve. Accelerate change and new product development at AWS through solutions.

Advertiser Solutions

Ad Networks and

Exchanges

Publisher Solutions

Content Publishers

Brands and

Marketers Data Providers

Digital Advertising Industry Scope for AWS

Industry Scope

Observations

1. Industry is very fragmented – barrier to enter is low2. Value chain from Advertiser to Publisher is complex –

too many intermediaries (take about 60% of the Advertising $$$)

3. Overall market is growing - $170B in 2015 to over $200B in 2017

4. Some areas ground much faster – Mobile, Video, RTB

Finding Growth

Mobile

RTB

Big Data

Video

Mobile

US – Market is veryfragmented

Smaller companies are AWS customers

High growth (40% YoY)

Very competitive

RTB

High growth YoYAd Exchanges Low margin - efficient operators have advantage

Video

High growth, high eCPMsFraud issuesAd blockingServer side ad stitchingNew VAST 3.0 is just published

Industry Solutions

Dec 2006 Web 2.0 Summit – Tim O’Reilly interviewed Jeff Bezos and Jeff mentioned “undifferentiated heavy lifting”

Industry solutions – try to identify new “undifferentiated heavy lifting” and solve the problem with AWS.

Some Examples: Real Time Bidding

Differentiators

Algorithms for RTB

ML Models

Heavy Lifting

Scaling EC2 instances

Low latency NoSQL

Heavy Lifting

Data access libraries

Optimizing Networking

Example RTB – Cost Curve

Do I need co-located bidders?

Do I need a dedicated networking team?

Do I need to own networking equipment? 1 2 5 7 10

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

Monthly RTB Fleet Spend vs. Roundrip Exchange Latency (ms)

Time (ms)

USD

Customer Perspective on RTB SolutionsCustomers have very different perspectives on what their business considers as competitive advantage

What is your competitive advantage?

What do you consider shareable knowledge? Customer 1 Customer 2 Customer 3

More advanced customers are sharing moreand raising the HL bar

HLHL

HL

“We run the RTB platform on more than 2,500 machines, approximately eight hours a day globally, at a cost of less than $0.05 per day per machine...”

“Because we’re running on AWS, we’re able to focus 95 percent of our staff on new product development. Using AWS allows us to focus on innovating our platform and solving customer problems.”

Valentino Volonghi, CTO AdRoll

Example: Enabling Real Time Bidding

Advertiser Solutions

Example: RTB Data Collection

Improved speed (mins to secs), simplicity & cost reductionOver 60 Billion events/day

Reducing data latency to seconds Ingesting approximately 150TB daily

Big Data

This business is all about data – competitive advantage Everyone does it, but still easy to overspendApache Spark DruidAnalytics on streaming data

Solution Example: Ad Exchanges Outside AWS

18

EquinixAdIX

AWSCustomer

Ad ExchangeProvider

Ad ExchangeProvider

Ad ExchangeProvider

EquinixAdIX Ad Exchange

Provider

Ad ExchangeProvider

Ad ExchangeProvider

Ashburn

New York

Partner provides:Channel on NNI (<1GB) orDedicated port (>1GB)

Private IP

Public IP

Public IP

DX Partner

DX Partner

Reduce AWS traffic spend ~25%Predictable latency (vs. Internet)Reduced latency

Solution Example: Druid + Spark

Everyone knows and loves Apache Spark Druid is less popular but was “quietly”

implemented in a number of leading Advertising companies

Druid is an real time OLAP engine and can be used together with Apache Spark

Druid Architecture

Real Time Nodes

Broker Nodes

Historical Nodes

Hand Off DataSegments

Query API

Real Time Data

Druid + Spark Solution Technology

Improves query performance

Uses Druid index under RDD, no change to Spark user experience

Uses open source library by Sparkline Data to rewrite the queries and redirect to Druid.

Druid + EMR (Spark) Demo

Solutions Ideas and Feedback1. RTB2. Ad Exchange Connectivity3. Low latency user stores 4. Data Science

• Advertiser problems on sample data – attribution examples, etc.• Streaming data analytics (Kinesis + EMR/Spark)

5. Mobile (SDK IAB compliance, mobile services etc.)6. Ad content delivery7. Cost savings with EC2 Spot

Dmitri TchikatilovDigital Advertising BDdmitrit@amazon.com