Amazon Enters RTB Market With Cloud Service Built For Agentic Era

Amazon Web Services (AWS) introduced on Thursday a fully managed service built for real-time bidding (RTB) advertising workloads.

Through the cloud it supports demand-side platforms (DSPs) and supply-side platforms (SSPs), as well as companies that focus on fraud detection and brand safety.

“AWS RTB Fabric” helps advertising-technology companies connect with their supply and demand partners, such as Amazon Ads, GumGum, MobileFuse, Sovrn, TripleLift, Viant, Yieldmo, and others.

As ad platforms transition to agentic artificial intelligence (AI) workflows that produce insights, AWS and services like RTB Fabric will help to support the transition, Stephanie Layser, global head of ad tech solutions at AWS, told MediaPost.

While RTB offers tremendous opportunities, it also presents significant cost-efficiency challenges including substantial infrastructure expenses for processing millions of transactions, high data-transfer costs between supply and demand platforms, and strict latency requirements in petabytes and millisecond latency. It also introduces complexities.

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The idea, Layser said, is to make it easier for partners to connect and reinvest the savings into agentic AI, creating a more efficient marketplace. Many of these companies work on thin margins.

Through the service, AWS will offer first-party modules, which either filters or enhances RTB requests. This capability is available at launch, but in the future the company also will support third-party modules.

The capability helps customers bring their own and partner applications into the environment for real-time bidding. Modules support containerized applications and foundation models (FMs) that can improve transaction efficiencies and bidding.

At launch, AWS RTB Fabric includes modules for optimizing traffic management, improving bid efficiency, and increasing bid response rates, all running inline within the service for consistent low latency.

Publishers that have built a prebid server also can operate on AWS RTB Fabric.

To date, real-time bidding services have primarily been accessible to companies that can afford to build and run their own RTB applications and cover the associated data transfer costs to process tens of millions of transactions per second.

Media consumption has grown exponentially in the last decade. With a surge in mobile and video content consumption, the programmatic advertising market is projected to reach $2.75 trillion by 2030, growing at 22.8% annually, according to AWS data.

In the next phase of RTB, cloud services from AWS RTB Fabric will give DSPs and SSPs the ability to process tens of millions of ad requests per second through split-second auctions enhanced by AI and machine learning (ML) capabilities.

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