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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
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