Amazon continues to strive to dominate the world of new technology advertising.
Amazon Web Services is launching a real-time bidding service for ad buyers and sellers called AWS RTB Fabric, which aims to allow marketers and news organizations to buy and sell digital commercial inventory through split-second auctions. This debut work focuses on the growing importance of so-called “programmatic” advertising, digital commercial inventory that is purchased through algorithms that help find specific consumers based on things like geographic region or potential interest in a particular product or service.
Amazon Web Services hopes to attract companies that can’t afford the cost of running a real-time bidding application or the data processing required to make it happen.
Stephanie Layser, global head of ad tech solutions at AWS, said the new AWS products deliver significant cost savings and reduced bottlenecks.
Citing data, Amazon Web Services predicts that the programmatic advertising market could reach $2.75 trillion by 2030 due to increased mobile and digital usage.
In recent months, a number of companies have formed partnerships around demand-side platforms. Amazon has secured partnerships with Netflix, Disney, and SiriusXM. The hope is that if marketers are given the opportunity to purchase broader programmatic inventory from a single venue, they will show fewer commercials to the same consumer and improve their effectiveness by delivering them more accurately.
Real-time bidding includes the use of split-second auctions to help process millions of inventory requests from advertisers, allowing marketers to target their messages to a better defined audience while avoiding exposing those consumers to the same commercials too many times. This challenge will only increase as more people move to streaming.
