Amazon Web Services Debuts Real-Time Bidding Service for Advertisers, Media

Amazon continues to work to dominate the world of new-tech advertising.

The company’s Amazon Web Services will launch a real-time bidding service for ad buyers and sellers called AWS RTB Fabric, with a goal of helping marketers and media outlets buy and sell digital commercial inventory through split-second auctions. The debut spotlights the growing important of so-called “programmatic” advertising, or digital commercial inventory that is purchased via algorithms that help seek out particular consumers based on geographic region or potential interest in a particular product or service, among other factors.

Amazon Web Services expects to lure companies that might not have been able to afford the cost of running real-time bidding applications or the data processing required to make it happen.

The new AWS product will provide noticeable savings and fewer obstacles notes Stephanie Layser, global head of ad tech solutions at AWS.

Citing data, Amazon Web Services projects that the programmatic advertising market could reach $2.75 trillion by 2030, thanks to increased mobile and digital usage.

In recent months, many companies have struck alliances involving their demand-side platforms. Amazon has secured alliances with with Netflix, Disney and SiriusXM. The hope is that giving marketers the chance to buy a broader set of programmatic inventory from a single venue might reduce the number of commercials they show to the same consumer, and improve the effectiveness of commercials by distributing them with more precision.

Real-time bidding involves the use of split-second auctions that help process millions of requests for inventory from advertisers, and helps marketers put their messages in front of a better defined audience while not overexposing those consumers to the same commercials again and again — a challenge that has only grown as more people migrate to streaming.