Launch announcement

Making Programmatic Smarter: How Amazon's Dynamic Traffic Engine (beta) Tackles Inefficiencies in Ad Buying

November 25, 2024

What launched?

Amazon Ads is introducing Dynamic Traffic Engine (beta) — a new traffic signal sharing and shaping tool that enables Amazon Ads to inform SSPs exactly what supply it needs, when it needs it, by sending “low demand” or “high demand” signal recommendations in advance. In doing so, Dynamic Traffic Engine empowers SSPs to shape traffic on behalf of Amazon Ads and only send the supply that is likely to generate an impression, helping SSPs optimize their allocated query-per-second (QPS) capacity and networking costs.

Why is it important?

Programmatic advertising has revolutionized digital media buying, automating the buying process and opening up access to inventory that was previously difficult to obtain. However, with the introduction of header bidding and an influx of new SSPs, exchanges, and ad tech intermediaries involved in the selling and buying of ads, the volume of signal transfers and ad serving has skyrocketed.

This surge in bid requests has taken a toll; supply-side platforms (SSPs) which help website owners sell their ad space, struggle to accurately "know" what traffic to send to buyers and demand-side platforms (DSPs), which help advertisers buy ad space, in turn have resorted to implementing caps on the number of ad requests they’ll accept from SSPs to protect themselves. The net result has been the introduction of inefficiencies in the ad buying process that drive up infrastructure costs for SSPs and DSPs, hindering campaign performance for all stakeholders.

Initial tests of Dynamic Traffic Engine have shown promising results, demonstrating significant improvements in efficiency for both Amazon Ads and SSPs. During testing, once activated, it reduced the number of undesired or “low demand” ad requests being sent to Amazon Ads from an SSP by over 40%1, dramatically reducing processing overhead and showing lifts in Amazon Ads receiving better bidding opportunities. This efficiency boost extended to supply-side platforms as well, as evidenced by the experiences of early beta tester Yieldmo.

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We're impressed with Dynamic Traffic Engine's early impact. In just a few weeks, we’ve seen on average 7%2 improvement in fill rate and spend per million ad requests on participating traffic. This efficiency is already boosting our bottom line and enhancing our ability to serve publishers and advertisers more effectively. We're excited to continue exploring this innovative solution's full potential as we further optimize our inventory and drive revenue growth.

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- Teddy Jawde, Chief Product Officer, Yieldmo

These outcomes demonstrate that Dynamic Traffic Engine can help effectively guide SSPs in delivering the exact ad opportunities that Amazon Ads customers' need, marking a substantial leap forward in programmatic efficiency for the entire industry. SSPs already using Dynamic Traffic Engine with Amazon Ads include Yieldmo and TripleLift, with Index Exchange expected to get started by end of year.

Where is the feature available?

  • North America: United States, Canada, Mexico
  • South America: Brazil
  • Europe: Germany, Spain, France, Italy, United Kingdom, Belgium, Switzerland, Poland, Turkey, Austria, Netherlands, Sweden, Finland, Norway, Ireland, Denmark, Luxembourg
  • Middle East: Saudi Arabia, United Arab Emirates, Israel, Egypt, Morocco, Bahrain, Kuwait
  • Asia Pacific: Australia, India, Japan, New Zealand, China, Singapore

Who can use it?

Unlocking New Levels of Efficiency and Revenue for SSPs
Integrating Dynamic Traffic Engine can help SSPs benefit from:

  • Improved Inventory Management: By replacing bid requests that would be rejected with bid requests that have a higher chance of meeting advertiser demand, Dynamic Traffic Engine can help SSPs save unnecessary network cost and bid processing, leading to more efficient inventory management.
  • Enhanced Signal Transparency: The open and collaborative nature of Dynamic Traffic Engine provides SSPs with valuable demand-side insights, empowering them to make more informed decisions about their inventory and yield management strategies.
  • Improved Monetization: With the ability to prioritize inventory that is most in-demand, SSPs can help fulfill more of their available ad impressions, improving monetization.
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Dynamic Traffic Engine builds on the robust optimization framework at SSPs like Index Exchange by integrating more precise buy-side signals. These advanced buy-side signals complement our existing traffic optimization, driving even greater efficiencies and unlocking new opportunities for both buyers and media owners. We’re pleased to collaborate with Amazon Ads to accelerate innovation and growth across the programmatic industry.

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- Jared Lansky, Senior Vice President, Platform Partnerships, Index Exchange

Driving Programmatic Performance: Dynamic Traffic Engine's Advantages for Advertisers
Dynamic Traffic Engine can help unlock significant advantages for advertisers as well. By sending SSPs clear signals on the inventory they should prioritize, Dynamic Traffic Engine enables advertisers to access a more desired pool of bid requests through Amazon Ads, allowing them to reach their audiences more effectively. This optimized traffic flow can also help advertisers access a greater volume of impressions that closely align with their marketing objectives and desired audience interests, improving the overall relevance and performance of their campaigns.

Pioneering the Future of Programmatic Collaboration
Dynamic Traffic Engine represents a significant step forward in fostering collaboration between Amazon Ads and SSPs to simplify the programmatic supply chain. By openly sharing demand signals, Amazon Ads, together with SSPs are pioneering a new industry standard for efficiency and transparency, leading to better outcomes for advertisers, publishers, and ultimately, consumers.

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By being more prescriptive about the traffic we want and eliminating the guesswork for both buy-side and sell-side, Dynamic Traffic Engine helps improve inventory management and reduce network and compute costs for SSPs, while allowing Amazon to provide our customers with increased access to relevant and addressable supply. We're excited to drive industry-wide adoption, starting with SSPs and eventually expanding to DSPs as we look to open this up to the broader advertising industry.

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- Chris Conetta, Head of Supply, Buyer Services, Amazon Ads

At Amazon Ads, we're committed to driving innovation that benefits the entire advertising supply chain. With Dynamic Traffic Engine, we're taking a major step towards a more efficient, and effective future for programmatic advertising.

Where do I access it?

  • For SSPs interested in getting started with our ready-to-deploy signals, please contact your Amazon Ads representative today.
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Data sources:
1 Amazon Internal Data, WorldWide, Oct, 2024. This is based on past data and does not guarantee future performance.
2 Yieldmo Internal Data, WorldWide, Oct, 2024. This is based on past data and does not guarantee future performance.