What is Ad Mediation?
Quick Definition: Ad Mediation is a solution that allows mobile app publishers to manage and connect to multiple ad networks through a single Software Development Kit (SDK). Its purpose is to optimize ad revenue and Fill Rate by creating an auction-like environment, where networks compete for the publisher’s ad inventory.
An Introduction to Ad Mediation
Imagine an affiliate publisher integrates only one Ad Network. If that network lacks an ad for the user, the request fails. When this happens, the publisher earns nothing. Ad Mediation solves this problem by allowing the publisher to integrate dozens of ad networks at once.
When an ad opportunity appears in the app, the mediation platform requests ads from multiple networks. It then selects the highest-paying one available. The traditional method for this process is called the “waterfall.”
The Ad Mediation Waterfall
In a waterfall model, the publisher ranks their ad networks in a list based on historical eCPM.
- The mediation platform calls the top-ranked ad network first.
- If that network has an ad to serve at the expected price, it “fills” the request, and the process stops.
- If it cannot fill the request, the mediation platform “cascades” down to the second network in the list and makes the request again.
- The system continues down the list until it fills an ad or exhausts all available networks.
Modern mediation platforms are moving beyond the waterfall to more advanced real-time bidding models, where all networks bid simultaneously in a true auction.
Why is Ad Mediation Important?
- Maximizes Revenue (eCPM): By creating competition among ad networks, mediation ensures the publisher is always showing the ad from the network willing to pay the most at that moment, which drives up the overall eCPM.
- Increases Fill Rate: The system sends each ad request to multiple networks to find an available ad. This method ensures platforms make use of more ad opportunities.
- Simplifies Operations: It saves developers a massive amount of time and technical resources. They only need to integrate the single SDK of the mediation platform, instead of many.
- Provides Control & Insights: Mediation dashboards give publishers a single place to view performance data from all their network partners, providing valuable insights for their Ad Monetization strategy.
Related Terms
- eCPM (effective Cost Per Mille): The primary metric used to rank ad networks in a mediation waterfall.
- Fill Rate: Ad mediation improves a key metric known as fill rate.
- Ad Publisher: An app developer or company that integrates ads into their product, making their user base (inventory) available to advertisers to generate revenue.
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