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Autonomous Optimization for Advertising and Marketing Companies

Alon Roitman

Channels and Cloud Alliances Lead, Intel Granulate

Advertising and marketing technology companies are experiencing significant growth and this is only set to continue, but with the growth of an industry come several challenges. In 2021, the global AdTech market was valued at $748.2 billion and is expected to reach $2.9 trillion by 2031. This means the industry is set to get even more competitive. With new players entering the market all the time, those who can overcome the challenges of a rapidly growing industry to best serve their customers are going to be the ones that, ultimately, succeed.

Currently, those in the AdTech and MarTech spaces are coming up against challenges in an effort to stay relevant to customers who are now presented with more choice than ever. For AdTech companies, real-time bidding (RTB) is a vital part of the automated ad-buying process, but to process these huge amounts of requests quickly enough to win a bid, a system needs to be fast. If those companies struggle with throughput, resource utilization, and latency issues, it could begin to devalue their product.

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The good news is that there’s a solution. Granulate is proudly taking part in the  Advertising & Marketing initiative from Amazon Web Services (AWS), which offers this industry an advanced set of tools to win in a competitive market. This no-code tool uses autonomous optimization to automatically improve resource management and reduce CPU utilization.

Building Resilience

Granulate’s optimization technology has delivered tangible results for a range of firms in the advertising and marketing tech space. One notable example is ironSource, a renowned player in online advertising. ironSource works with 25 billion daily ad requests, a 100 terabytes data pipeline, and online and offline machine learning modules processing 4 billion daily events.

ironSource chose to deploy Granulate’s performance optimization solutions on its EKS workloads, where it observed substantial improvements. These included a 25% cut in cloud costs, a 21% drop in instances count, and a 29% increase in throughput. Remarkably, all these improvements were achieved without any requirement for research and development (R&D) efforts or modifications to the existing codebase.

With these kinds of results, AdTech and MarTech companies can scale quickly, allowing them to continue to provide a high level of service to customers while releasing new features — rather than dealing with resource issues. This continuous optimization technology also helps businesses handle seasonal peaks.

Take Black Friday and Cyber Monday for example. According to research from Future Publishing, 76% of US consumers plan to shop during Black Friday. This represents a huge opportunity for online retailers to draw in that audience with offers and new products. This means that the AdTech and MarTech companies working with those e-commerce brands will see a huge uptick in requests in the run-up to this time.

If those retailers are unable to execute their campaigns effectively because of resource issues with their MarTech platform, that could lead to millions in lost revenue — especially when you consider that the average US shopper spends around $818 on Black Friday. With a continuous optimization tool, it’s easier to manage these peaks and keep both retail customers and consumers happy.

Happy customers are loyal ones and this gives both adtech and MarTech companies an advantage over their competitors, especially when it comes to winning ad space using real-time bidding.

Gaining the Competitive Edge

When it comes to RTB, AdTech companies can gain a competitive edge with increased throughput. Time in this case is, quite literally, money, which means the system needs the throughput and latency to be able to handle, potentially, billions of requests per day — many with sub-100 millisecond response times. 

If latency is an issue, that can lead to losing those bids to faster advertisers, something AdTech companies want to avoid when trying to best serve their customers. Optimization is the key to solving these issues, and with Granulate, it’s possible to get up to five times the throughput while reducing latency by 40%. This enables AdTech companies to respond quickly and make requests that will help them win the best ad placements for the best price.

Increasing Scalability

During a period of swift expansion, Sharethrough was processing an enormous volume of data, with daily impression requests hitting 128 billion — seeing a huge 1.6 million queries every second. The company needed a solution to enhance efficiency, reduce risk, and cut down instance costs. Leveraging Granulate’s optimization tool, Sharethrough made impressive strides. Within less than a week, it improved CPU utilization by 26% and trimmed its EC2 costs by 17%.

The fast-paced world of AdTech and MarTech presents unique challenges, but with solutions like Granulate, these companies are more equipped than ever to overcome these obstacles. As the industry braces for a more competitive and demanding future, continuous optimization will be a game-changer, providing AdTech and MarTech companies with the necessary competitive edge. 

If you’re in the AdTech or MarTech space and want to optimize your performance, reduce costs, and scale efficiently, explore how Granulate can transform your operations here.

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