The advertising and marketing industry is ranked as the third fastest-growing industry in the U.S. A large part of this growth is driven by advertising technology, or Ad Tech. With revenues forecast to grow over 300% by 2020, data plays a key role in the future success of digital advertising.
Ad Tech applications are incorporating increasingly advanced algorithms for the “front end” bidding, targeting and analysis. Equally important is the back-end infrastructure, which ensures the applications perform at peak levels. Companies need both capacity and speed to ensure that real-time bidding takes place in a matter of milliseconds. Any lag, or data latency, means lost user and revenue opportunity.
For Ad Tech companies to compete effectively, they must invest in data infrastructure. But typically, this size investment comes at a high cost. In this competitive data-driven space, Ad Tech providers are struggling to overcome three distinct challenges:
- Control growing costs
- Dramatically reduce data latency
- Support fast growth
Overcoming Prevalent Ad Tech Challenges with Zayo
Zayo is well-positioned to address these challenges. Our colocation data centers are designed with a flexible infrastructure, eliminating the need for multiple service providers.
Because of the high-density computing needs of Ad Tech providers, we see companies utilizing 8 to 10 kw/cabinet – twice as much as the average enterprise load, translating to significantly higher costs and complexity to run their applications.
Our colocation data centers have flexible space and the ability to support high-density power loads. We now have more than 60 interconnection-rich data centers in metro and edge markets, with connections to the world’s largest ISPs – and access to our expansive network.
We understand that latency is critical. According to a global e-commerce powerhouse, 100ms loss of latency can cost 1% in sales. The same principle is at work in Ad Tech. Zayo’s infrastructure can lower latency in a couple of key ways. In addition to edge data centers that are located and engineered to reduce latency, our network includes low latency and ultra-low latency routes that enable millisecond-speed data transport. The combination of colocation data centers and high-performance connectivity from one provider offers the optimal way for Ad Tech companies to gain a competitive edge.
MediaMath, an independent programmatic advertising company, sees great value in the integrated approach “The combination of Zayo’s connectivity and colocation was a big differentiator for us,” said Keith O’Neill, Senior Engineering Manager at MediaMath. “While we are moving our data center to the edge, Zayo’s infrastructure ensures that we have the performance needed to process, move and store massive volumes of real-time data.”
Take a deeper dive into the state of Ad Tech with our new white paper, “Speed, Scalability & Savings – How Ad Tech Gains a Competitive Edge.” The white paper is free to download and explores how Ad Tech partners like MediaMath and OpenX have tapped into zColo’s interconnect-rich data center portfolio and extensive fiber network to dramatically reduce data latency while providing a platform to scale at a controlled cost.