Real Time Bidding on AWS - Pop-up Loft Tel Aviv
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1. Real time bidding (RTB) refers to the practice of buying and selling display ad impressions through ad exchanges in real time and one impression at a time. 2. AWS is well suited for building RTB solutions due to its scalability, global infrastructure, and services that handle non-differentiated heavy lifting like networking and data processing. 3. Sample RTB architectures on AWS use Elastic Load Balancers and Auto Scaling Groups for front-end servers, DynamoDB and Redis for low latency caches, Kinesis and Spark for data collection and analytics, and EC2 Spot Instances to reduce costs. Building on AWS allows customers to focus on their competitive advantages rather than infrastructure.
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Real Time Bidding on AWS - Pop-up Loft Tel Aviv
- 1. Real Time Bidding on AWS Dmitri Tchikatilov AdTech BD, AWS dmitrit@amazon.com
- 2. Agenda 1. Goals and how AWS works with RTB clients 2. Observations and latest trends 3. Building RTB solution on AWS 4. Examples
- 3. RTB Definition Real time bidding (RTB) refers to the practice of buying and selling display ad impressions through ad exchanges in real time and one impression at a time.
- 4. RTB Process Simplified 1. User goes to a web page 2. Ad impression is sent to an Ad Exchange 3. Ad Exchange invites bidders 4. Highest bidder wins the impression 5. Winning ad creative is delivered
- 5. Programmatic Market - US RTB $11B, 74% in 2015 Low margin - efficient operators have advantage Programmatic direct buy is gaining market share too
- 6. Global RTB Market 1. Traffic is traded in a few key locations on AWS (e.g. us-east-1) and several large exchanges outside AWS 2. Easy to start buying traffic globally – roll out new AWS Regions (Korea, China, India – TBD)
- 7. RTB Elasticity for Traffic Volume Changes Traffic changes drastically predictable – daily, weekly, seasonal Also unpredictable – large scale events (LSE) (Kim Kardashian)
- 9. What is the Desired Degree of Control? RTB Network Engineer
- 10. Where is the Non Differentiated Heavy Lifting? Customer Manages All-On Prem RTB colo with Exchange S3, Networking EC2 S3, Networking EC2 S3, Networking EC2 ASG, ELB DynamoDB ASG, ELB DynamoDB Manage Administer Algo, ML
- 11. Networking • Days of RTB customers owning AS numbers are gone... • Large “legacy” colo display bidders and exchangers will remain very relevant • New RTBs and Exchanges (Mobile, Video) pick AWS and grow successfully • Simplified networking designs • Optimization of EC2 for networking, latest HVM AMIs single root I/O virtualization (SR-IOV)
- 12. Front End Servers • Most people use ELB, sometime run their own ELB (HA Proxy, NginX) • Enable HTTP Persistent Connections (HTTP Keep-Alive) • Developer feedback - older legacy bidders C/C++, Java, Erlang, newer systems – Node.JS, Python, Scala • Bidders are becoming more modular, dockerized • When traffic grows, use ELBs and ASGs dedicated to individual exchanges • Single AZ deployments reduces the ELB latency by few ms. • Custom application level metric(s) is/are computed and published to CloudWatch, ASG works off that custom metric(s) • Separating Bidding fleet from Exchange Listening (and not bidding)
- 13. Low Latency Caches • Popular choices are: Aerospike, DynamoDB, Redis • DynamoDB hash (userId) + range (audience segment) partitions • DynamoDB schemas considered to be a differentiator, but we are looking to share some ideas and patters for best practices (user profile store/cookie store - low latency features for Machine Learning) • Cross-region replication is becoming more common (Streams + Lambda) moving away from Storm
- 14. Data Collection + Analytics Data from bidders is moved to a streaming service Apache Spark Most popular choices are: Kinesis + Spark & Kafka + Spark Batching of the data on the bidder to improve performance and economics
- 15. Example RTB – Cost Curve Do I need co- located bidders? Do I need a dedicated networking team? Do I need to own networking equipment? $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 1 2 5 7 10 USD Time (ms) Monthly RTB Fleet Spend vs. Roundrip Exchange Latency (ms)
- 16. Customer Perspective on RTB Solutions Customers 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 more and raising the HL bar HL HL HL
- 17. “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
- 18. Example: RTB Data Collection Improved speed (mins to secs), simplicity & cost reduction Reducing data latency to seconds Ingesting approximately 150TB daily
- 19. Reducing Costs Everywhere The company has saved tens of thousands of dollars. That’s between 20 and 30 percent of our total monthly AWS bill. Gal Aviv Research & Development Group Manager • 100 RIs + 800 Spot Instances • Partner – Spotinst Check out EC2 Spot features – Spot Fleet API and Spot Bid Advisor
- 20. Solution Example: Ad Exchanges Outside AWS 20 Equinix AdIX AWS Customer Ad Exchange Provider Ad Exchange Provider Ad Exchange Provider Equinix AdIX Ad Exchange Provider Ad Exchange Provider Ad Exchange Provider Ashburn New York Partner provides: Channel on NNI (<1GB) or Dedicated port (>1GB) Private IP Public IP Public IP DX Partner DX Partner Reduce AWS traffic spend ~25% Predictable latency (vs. Internet) Reduced latency
- 21. AWS Regions as Centers of Gravity Advertiser Ad Exchange Ad Network Publisher Ad Network Ad Network Ad Network Advertiser Publisher Reasons: Low latency Lower traffic costs Large scale secure B2B data sharing High Growth in Mobile Video
- 22. Dmitri Tchikatilov Digital Advertising BD dmitrit@amazon.com
Hinweis der Redaktion
- Customers find their operating ranges they are comfortable with and make economic sense
- More advanced customers are sharing more and elevating overall knowledge You can see that in other industries too
- NO Undifferentiated heavy lifting – Compare and contrast with traditional companies A great example of stunning growth and success is a company from California called AdRoll. AdRoll is an Advertiser Solution Provider and global leader in retargeting with more than 10,000 active advertisers across over 100 countries. The company is razor focused on delivering new business functionality to their clients and leaving the heavy undifferentiated lifting to AWS. What sets this company apart is significant simplification of the infrastructure which is achieved through latest advancements in several AWS technologies. Good question to think about - how many people in your organization are focused on new product development vs. maintenance of the existing solutions? Video (3 mins) https://aws.amazon.com/solutions/case-studies/adroll/
- Here is an example of large scale data ingest solution implemented by AdRoll The key benefit is reducing data latency and insight from minutes to seconds. It implements a streaming service called Kinesis which received the data from multiple sources and makes it available for real time batch and real time applications. Batching records to save $ in Kinesis Removing large numbers of small files Ingesting approximately 150TB daily AdRoll Kinesis ingest http://tech.adroll.com/blog/data/2015/06/26/kinesis.html
- Digital advertising business is very complex. Business relationships and partnerships are formed and large amounts of data is being exchanged. Imagine what happens when a large group of companies from this ecosystem are placed together in the same AWS Region. We are talking not only about just Advertising companies but their customers – multi-national publishers like Conde Nast and Hearst and media companies like Dow Jones. It creates new opportunities to exchange data with low latency and securely collaborate on very large data sets. We see signs of cloud based collaboration among the businesses – when AWS customers are motivating their clients to do business on AWS because of simplicity, agility and superior economics.