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In case of relative low traffic (around 5 million requests per month), I would discourage the use of ALB + Lambda for services that are more normal REST API and when you don't need any of functionalities offered by ALB (like the openID authentication, etc), as the cost of having ALB+Lambda is much higher for .
Anyway, you could use ALB + Lambda, when you are already using ALB for your EC2 instances. For example you have a domain for your application "www.myapp.com" pointing to your ALB, and you want to extend some of the functionalities of your domain using lambda. You can create new ALB targets pointing to lambda. For example you can create the target "/billing" to point to lambda, and the rest of the request to go to EC2, doing this you spread the traffic of your domain between different backends.
Major differences between API GW and ALB
| API GW | ALB | |
|---|---|---|
| Request/seconds | Limited to 10000 | virtually unlimited |
| Integration | Lambda and many others AWS services | EC2, ECS, private IP addresses, Lambda |
| Routing | Only on path based | Path base and others like Requesters IP, Http Headers, Http method, etc |
| Cost | Pay per request | Pay by time + Request (LCU) |
| Access Logging | Cloudwatch | S3 bucket |
I'd argue that, from a cost optimization perspective, there is a break-even point when one will cost more than the other based on # of requests.
Thanks mreferre, you are right, I updated the response