Online Ads Eco-system Value Add Hosting
As the market for online advertising grows, operators have been looking at ways of being part of the value chain, and specifically, get a piece of the overall revenue generated. Leveraging our deep knowledge of both the online advertising business, and the mobile and telecom eco-systems, we developed a new business from the ground up, to be utilizedby data center hosting providers as well as transit and mobile operators to address their needs. The value proposition developed enablesAd Networks and SSPs/DSPs to significantly optimize their bidding strategies through hybrid software/hardware ; network infrastructure based solutions address the vexing bidding latency issues, remove costly overheads and increase algorithms optimality.
The market for real time bidding in online advertising is in its early stages of development and expected to grow five fold between now and 2016, into a multi-billion dollars business opportunity. The number of DSPs, DMPs and Ad Exchanges is also expected to grow significantly, creating a venue for a consolidate eco-system bringing all these players together.
To optimize their RTB solutions, DSPs are under increased pressure to develop new algorithmic solutions. This will provide them with an edge over other competitors. They also need to address the inherent latency issues in real time bidding, (where in network latency consumes up to 80% of the bidding time), as well as the complexity of dealing with the bidding eco-system players. Such solutions require increasingly sophisticated computing infrastructures, ultra-low latency network access to Ad Exchanges, and higher interaction with the various online advertising eco-system players, along with tighter relationships with Ad Exchanges. All of these come with significantly increased capital, and operational cost structures, as well as infrastructure design complexity.
Xona Partners developedsolution addresses the various challenges seen by DSPs by allowing them to focus on their key competency, which is the development of effective real time bidding solutions, and it also provides them with turnkey software/hardware infrastructure solutions and bidding optimization platforms.Through the delivery of a dynamic hosted networking eco-system for bidding optimization and related services, RTBFast provides direct benefits to DSPs, Ad Exchanges and the various players in the online advertising value chain.
Xona Partnershas put together a solution framework, including SSPs/DSPs in partnership with Data Center hosting providers, with the goal of creating a critical mass of players in the online advertising value chain. It also provides a topological architecture that would optimize data delivery, peering with Ad Exchanges and creating a value add Ad Ecosystem off the various advertising data, with clear benefits to DSPs/SSPs in terms of costs reduction and new services creation.