In 2015, eMarketer estimates programmatic ad spends to rise nearly 50% to $14.88 billion, representing 55% of total digital display ad spending. But this rise in digital advertising comes with its own set of challenges.
According to a recent U.S. media buyers survey by Digiday and Sonobi, 40.7% of the respondents said there was a significant loss of control when purchasing ad inventory programmatically vs. direct. That’s an issue, because 73% of the respondents said ad “visability/viewability” was essential to any decision to move more spending to programmatic advertising. Increasingly, cloud services will play a critical role in solving this challenge.
Advertisers need to purchase quality ad inventory from trusted partners quickly and they’re programmatic ad placement systems need millisecond visibility into data used to define audience targeting. At the same time, ad exchanges and demand-side platform companies need to expand their compute and storage resources at a moment’s notice to keep up with the surge in demand.
Working within an integrated and interconnect ad tech ecosystem that also incorporates direct access to a dense ecosystem of cloud providers will help advertisers gain back the control they require to ensure the viewability they need for a greater return on investment from their programmatic ad programs.
It starts with fast interconnection
Real-time bidding (RTB) on ad inventory is fast and competitive. Ad exchanges require that companies complete their RTB on ad inventory within 60 to 100 milliseconds. In order to beat that speed and win more bids, you need to reduce the latency between yourself and the ad exchanges, demand side platforms (DSPs), data aggregators and all other parties involved in RTB.
RTB is one of the many areas where Equinix’s Ad-IX ecosystem enables companies to leverage each other. The Ad-IX ecosystem hosts more than 25 ad networks, 15+ ad exchanges and 85+ ad companies, along with DSPs and aggregators. By offering a private, direct interconnection between all of these parties, advertisers can decreased their average latency to single-digit milliseconds, allowing more time for data analysis. This fast, direct interconnection and close proximity to partners, not only reduces latency, but also lowers the number of incomplete transactions, enabling advertisers to increase their successful ad bids.
Fast access to multiple ad tech cloud services and resources
Leveraging the more than 500 cloud providers and 1,000+ networks in Equinix’s worldwide IBX data centers, ad tech companies are able to directly access key industry partners and cloud services. The Equinix Cloud Exchange offers direct connection between digital advertisers and multiple networks, clouds, partners and customers, bypassing the public internet and providing significant performance and cost savings, and access to greater storage and compute resources.
Ad tech companies no longer have to guess at their equipment requirement needs to meet burst requirements. They can take advantage of the services of leading cloud solution providers such as Amazon AWS, Microsoft Azure, Google Cloud Platform and IBM Softlayer, as well as key cloud partners in the ad tech industry to scale their capacity.
As an example, Brightroll, a leading video advertising platform provider, wanted to build the world’s fastest real-time bidding (RTB) solution for digital video advertising. The company co-located its BrightRoll Exchange (BRX) platform in Equinix data centers to take advantage of the facilities’ direct connections to many high-speed networks and advertising industry partners, including those in the cloud. Equinix’s direct connections reduced the company’s network latency by 80%, increasing its successful bids by 48% and ultimately significantly boosting revenue.
Learn more about the Equinix Ad-IX ecosystem.