Delivering ad relevance without third-party cookies: Advanced techniques for bid shading

For nearly a decade, the advertising and marketing industry has gone through an inevitable transformation. What once seemed like a distant possibility has now become a reality: almost 40% of global online browser traffic already operates without third-party cookies. Eventually, up to 90% of the web will be anonymous, signaling a critical moment for advertisers and ad tech providers alike to pivot towards more strategies that are effective in reaching consumers.

At Amazon Ads, we have treated the transition as an opportunity to innovate and enhance the value we provide to advertisers. This involves evaluating competitive dynamics in open exchange auctions to strategically place the minimum winning bid, and optimizing for our customers' value and budget efficiency. This approach is particularly crucial for browsers and devices without third-party cookies, where many ad tech providers can't bid effectively on anonymous inventory. To address this, Amazon Ads is updating its advanced bid shading algorithm to help our customers achieve the highest possible return on their advertising investments.

This technical white paper details how Amazon DSP innovates, particularly with bid shading across third-party supply, increasing its effectiveness and relevance for advertisers.