Dyn IPM: Manage the Internet Like You Own It.
In Programmatic, every millisecond matters. Companies win or lose in 200 ms. Bids that take a long time to get back to the auction timeout. Timeouts reduce bid density. Reduced bid density means lost revenue. This is why if a company can reduce its latency by five milliseconds it can increase its revenue.
As a result, companies are trying a lot of different approaches in the hopes of saving time. These include co-location, extensive peering and cross-connects.
But what if there was another way to reduce latency and drive revenue?
There is and it is something that Cox, in partnership with Dyn, is pioneering. This approach is based on the common knowledge that latency, packet losses and other internet vagaries are reducing Programmatic performance. Dyn, using its Internet Intelligence that provides global visibility of the internet, proposed that by removing latency, packet losses and other internet vagaries, Cox could lift Programmatic revenue.
Cox allowed Dyn access to a portion of its traffic and so the two companies created two paths from Cox Data Center servers to the DSPs: a native path and a Dyn adjusted path:
The hypothesis was that Dyn’s Internet Intelligence would pick the fastest transit route, thereby reducing latency and increasing revenue.
The results proved Dyn and Cox’s hypothesis correct. While there were some instances where the latency and revenue did not increase that much, for the most part there was significant gains.
For example, the native path to one DSP was ~4ms slower (network latency) than the adjusted path that Dyn showed. That change meant Cox achieved a ~7-9% increase in revenue over this period of 2+ weeks.
A second result (see below), showed the native path was ~15ms slower (network latency). This led to a dramatic reduction in Real Time Templating (RTT), allowing Cox to achieve a ~3-4% increase in revenue over this period of ~1/2 month.
These positive results have huge implications for Cox. The additional time can be used to run more sophisticated real-time pricing algorithms, normalize and enrich data and apply more real-time filtering, according to Scott Siegler, GM & SVP Engineering, Cox Media.
Now that Dyn and Cox have attacked the issue of latency and ping loss, they have plans for the future that involve transit cost, preferred providers and pre-emptive path switching. Most interesting though, is that Dyn currently has patent pending technology, that could also influence the return path, which could, possibly, double the reduction of latency the companies like Cox are seeing.