Amazon Ads has donated a new agentic framework to IAB Tech Lab, the technical standards group for the advertising industry, designed to help demand-side platforms communicate bidding priorities to
supply-side platforms across programmatic ad systems.
“Dynamic Traffic Engine” assists buyers and sellers in dynamically controlling bid requests and traffic flow by
sending low or high-demand signals to Supply-Side Platforms (SSPs). The idea is to reduce ad waste and improve efficiency.
This agentic technology will support a standard as the industry moves
toward automation and interoperable bidstreams, the network of ad requests sent from a publisher to an advertiser containing data to help determine whether a consumer is a valuable target for an
ad.
As discussions progress, the initiative will become part of the IAB Tech Lab’s Open Source initiative. Depending on the requirements, either the Programmatic Supply Chain
Working Group or the Agentic Taskforce will take on the task.
advertisement
advertisement
“This is a practical step toward making the programmatic supply chain more efficient and more
predictable,” states Anthony Katsur, CEO, IAB Tech Lab. “When buyers can clearly signal what they want, and sellers can respond, everyone benefits from reduced waste and better use of
infrastructure.”
The technology has already begun to see traction in the industry. PubMatic has already integrated with the technology globally. Its clients have seen up to a 10%
increase in eCPM1. Since integration, the company claims to have "seen stronger value out of each bid request, improved campaign efficiency, and a more efficient supply chain overall."
This integration matches campaigns with inventory more closely aligns with campaign goal, according to a PubMatic blog post from March.
“What excites me
about our work with Amazon Ads is what it signals about where programmatic is heading," Rajeev Goel, co-founder and CEO at PubMatic, wrote.
He sees programmatic working as it
should when a “DSP invests in technology like DTE to route more intelligently toward high-value supply, and publishers see measurable gains as a result.”
Amazon
Ads' Dynamic Traffic Engine uses a file-based method that enables demand-side platforms to specify which bid requests to prioritize. Signals can become broad or specific.
Supply-side platforms
use this data to minimize unneeded bid requests and decrease QPS pressure, a challenge an ad exchange sometimes faces when routing high volume of bid requests to Demand Side Platforms (DSPs) in real
time.
The hope is that other working groups and industry participants will provide feedback. Initial proposals include operationalizing this framework within the Agentic Advertising Management Protocols framework. This will leverage machine-readable
formats such as Protocol Buffers.