What is Ad Mediation?
Quick Definition: Ad Mediation is a technology solution in performance marketing 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 doesn’t have an ad to show for a specific user, the ad request fails, and the publisher earns no money. Ad Mediation solves this problem by allowing the publisher to integrate dozens of ad networks at once.
When an ad opportunity arises in the app, the mediation platform sends the request to multiple ad networks to find the highest-paying ad 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.
- This continues down the list until an ad is filled or all networks have been tried.
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: By calling multiple networks for every ad request, the probability of finding an ad to show is dramatically increased. This ensures that fewer ad opportunities are wasted.
- Simplifies Operations: It saves developers a massive amount of time and technical resources. Instead of having to integrate and maintain a dozen different SDKs, they only need to integrate the single SDK of the mediation platform.
- 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
- Ad Network: The individual ad sources that are managed within a mediation platform.
- eCPM (effective Cost Per Mille): The primary metric used to rank ad networks in a mediation waterfall.
- Fill Rate: A key metric that ad mediation is designed to improve.
- Ad Publisher: The user of an ad mediation platform.
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