What is Ad Mediation?

Ad mediation enables publishers and app developers to turn every ad slot into a profitable revenue source by controlling the distribution of advertising from many networks within single placements on applications or websites. It simplifies the process of managing different ad networks using a single SDK.

This system automates ad network selection and optimization to get the maximum fill rates and eCPMs. As a result, it increases publishers’ earnings while reducing manual effort, allowing publishers to focus on content creation and audience development.

This article defines ad mediation, how it works, the benefits it provides, and which ad mediation platforms excel at assisting publishers in meeting their monetization objectives.

What is Ad Mediation?

Ad mediation is a technology that allows publishers to distribute their ad inventory across several ad networks. It enables publishers and app developers to work with numerous ad networks using a single SDK. The primary goal is to maximize ad revenue by raising eCPM, ad fill rates, and overall efficiency.

Advertising Mediation Platforms: An Overview

Ad mediation platforms assist publishers monetize their ads by raising ad fill rates and eCPM rates. These technologies automatically optimize searches for the best-performing ad networks, reducing the need for publishers to do so manually.

They employ algorithms to predict which network would provide the most money for a given impression based on a variety of characteristics such as CPM/eCPM, fill rates, ad formats, and users.

Ad mediation solutions often employ the following formula to maximize the fill rate, eCPM, or both:

• Ad revenue = ad requests * fill rate * eCPM

The ad mediation platforms choose the advertiser who will provide the highest ROI. Publishers can arrange several ad networks in a preferred sequence. As a result, if an ad network is unable to meet the request, the ad mediation platform will go on to the next one until the request is fulfilled.

How Does Ad Mediation Work?

Ad mediation technology analyzes ad networks for the greatest inventory for publishers and then sends out ad requests to boost fill rates.

Here are the four main steps demonstrating how this method works:

• Publishers link the ad mediation platform’s SDK into their app, allowing it to collect audience data.
• When the app is utilized, the SDK sends an ad request to the mediation platform.
• The platform then selects the top ad from its network pool based on revenue potential.
• The chosen ad is displayed, resulting in income for the publisher.

Benefits of Advertising Mediation

Maximizing Revenue

For publishers, particularly app developers, optimizing fill rates and eCPMs is critical for maximizing ad income. The fill rate, which is the percentage of ad requests that are successfully filled with ads, demonstrates how well your ad inventory is used.

• A higher fill rate indicates that a greater proportion of your advertising space generates income.

However, relying on a single or a few ad networks may limit your fill rate due to low demand. In this instance, you could have unused ad inventory and missed income chances.

This is where ad mediation systems may help. Ad mediation provides access to a broader range of advertising networks. It enhances the likelihood that each ad request will be met by a suitable advertiser, resulting in higher fill rates.

When one network is unable to satisfy an ad request, the platform immediately forwards the request to another network, repeating the process until the ad slot is filled. This increases your fill rate and guarantees that your product is consistently sold.

Furthermore, ad mediation services maximize eCPMs by picking the ad network with the greatest bid per impression.

Simplified SDK integration

The technological advantages of ad mediation cannot be emphasized. Without it, publishers would have to integrate and update multiple SDKs, one for each ad network, which is time-consuming and error-prone.

Ad mediation platforms require only one SDK integration. This saves time, reduces complexity, and lowers the likelihood of technical issues that can develop when maintaining many SDKs. Integration with an ad mediation platform is usually quick and simple, providing an easy way to access a wide selection of ad networks.

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Multiple advertising networks

For publishers who operate with many ad networks, handling each individually can rapidly become daunting.

Manually managing ten or more networks is time-consuming and frequently results in suboptimal ad revenue due to the difficulties of tracking and optimizing each network’s performance.

Ad mediation combines management overall ad networks into a single, unified platform. This single management system greatly simplifies app monetization and provides publishers with a comprehensive picture of their ad activities.

Ad mediation platforms provide publishers with full information, including crucial data and thorough performance reports across all networks.

Types of Advertising Mediation

Waterfall vs header bidding

Waterfall and header bidding are two fundamentally distinct approaches to managing and monetizing ad inventory via ad mediation.

• The waterfall approach arranges ad networks in a hierarchical order depending on previous performance measures like eCPM rates. When an ad request is sent, the system queries these networks in order of priority.
• Header bidding overcomes many of the waterfall model’s shortcomings by allowing all participating ad networks to bid on inventory in real time. Header bidding gives all demand sources an equal chance to win the ad impression.

The choice between waterfall and header bidding is determined by a publisher’s individual needs, which include technical resources, revenue targets, and ad inventory.

In-app versus web-based ad mediation.

Both approaches seek to maximize ad revenue while improving ad relevance, but each is suited to a certain use case.

• In-app ad mediation allows mobile apps to connect to numerous ad networks using a single platform or SDK. This strategy enables app developers to manage and optimize their ad inventory, delivering users with the most relevant and high-yielding advertising from a variety of sources without integrating each ad network’s SDK separately.
• Web-based ad mediation, on the other hand, works on websites that can be accessed using web browsers. This solution does not require an SDK; instead, it relies on web technologies and services that operate within the browser context.

Programmatic ad mediation

Programmatic ad mediation utilizes automated technology to facilitate the real-time buying and selling of ad inventory. It is an enhanced version of ad mediation that utilizes real-time bidding and machine learning algorithms.

Programmatic mediation tools assess each ad impression in real-time, guaranteeing that the ad space being used can generate higher revenue. App publishers can enhance their earnings by utilizing an automated system that selects the most lucrative ad networks.

Factors to Consider When Selecting an Ad Mediation Platform

The selection of an ad mediation platform is of utmost importance. Not all platforms exhibit equal levels of objectivity. Certain individuals may give higher importance to their networks, which could potentially distort the process of selecting advertisements and have an influence on revenue.

Hence, the process of choosing an ad mediation platform necessitates meticulous deliberation. Publishers should seek for systems that provide the advantages of automated mediation while also allowing them to customize their monetization strategy through manual controls and preferences.

As a publisher, there are 5 essential elements that you should take into account:

Compatibility across several platforms

Seek a platform that is compatible with several operating systems and devices. Greater compatibility leads to a greater likelihood of your adverts reaching a larger audience and increasing your potential revenue.

Pricing structure

Examine the pricing framework of the platform and choose one that aligns with your financial strategy. Certain platforms may impose a fixed price, but others deduct a percentage from your advertising revenue.

Customer evaluations

Allocate sufficient time to peruse reviews from fellow developers and publishers who have utilized the platform. Their experiences can offer significant perspectives on the platform’s performance, reliability, and user contentment, thereby preventing you from experiencing negative outcomes and financial losses.

Degree of assistance

Assistance is a crucial aspect, particularly for novices who are deficient in technical expertise. After identifying an ad mediation platform, assess the quality of their service by examining their help desk or support channels.

An efficient and knowledgeable support crew is essential for resolving any problems and ensuring little interruption to your advertising operations.

Features of the platform

Analyze the array of features offered by each platform. Key attributes to consider include:

• Ad optimization solutions automatically update and optimize advertising using performance analytics, user behaviour, and ad income possibilities. For publishers, this ensures that their ad inventory is utilized optimally without the need for frequent human modifications.
• An automated reporting system that delivers timely and precise information on the performance of advertisements, income generated, and user engagement. This function optimizes the analytic process, enabling publishers to swiftly discover trends, thus saving time and minimizing the likelihood of errors.
• The RTB functionality enables publishers to auction their ad inventory in real-time, ensuring that each ad slot is sold at the greatest price possible. This strategy optimizes advertising revenue by enabling numerous advertisers to vie for each impression, hence augmenting the price.

Common Mistakes and Strategies for Prevention?

Absence of regulation

An issue to consider is the possible relinquishment of direct oversight regarding the selection of presented advertisements. Inadequate ad selections may lead to a drop in revenue if the ad mediation platform does not precisely comply with the publisher’s standards or revenue optimization plans.

How to avoid this?

• Develop and incorporate personalized waterfall designs. Utilize the customisation capabilities of your ad mediation platform to give priority to ad networks that are in line with your revenue objectives and quality criteria.
• Utilize direct transactions. Establish direct partnerships with advertisers to exert greater control over the presented advertisements.
• Technological obstacles
• Integrating ad mediation platforms can be intricate and demand substantial development resources. In addition, resolving problems that occur can be a time-consuming task and necessitate a considerable amount of technical proficiency.

Technological obstacles

Integrating ad mediation platforms can be intricate and necessitate substantial development resources. In addition, resolving problems that occur can be a time-consuming task and demand a considerable amount of technical proficiency.

How can one prevent or evade this situation?

• Choose platforms that are easy to use and navigate. Choose ad mediation platforms that are renowned for their seamless integration and exceptional technical assistance.
• Allocate resources towards acquiring and developing technological skills. Establish or recruit a proficient AdOps team with expertise in managing the technical aspects of ad mediation, including integration and continuous optimization.

Increased complexity

Ad mediation adds level of intricacy to the process of developing apps and managing advertisements. For many publishers, particularly those with smaller teams or beginners, this increased complexity might be a challenge and necessitate further learning and adjustment.

How can one prevent or evade this situation?

• Condense as much as feasible. To simplify the process, begin by selecting a limited number of reputable ad networks, and then progressively increase the number as you gain confidence in the mediation process.
• Pursue extensive training. Collaborate with platforms that provide comprehensive onboarding, training, and resources to facilitate your team’s comprehension and effective management of the ad mediation environment.

Concerns over the quality of advertisements

Additionally, there is a potential danger of the ad mediation platform delivering subpar advertisements that may negatively impact the user’s experience. Advertisements that are invasive, irrelevant, or of subpar creative quality have the potential to irritate users, which may result in increased bounce rates.

How can one prevent or evade this situation?

• Establish rigorous quality benchmarks. Articulate your ad quality criteria explicitly and effectively explain these principles to your ad mediation platform to guarantee the delivery of only appropriate advertisements.
• Regularly monitor and evaluate advertisements. Establish a systematic procedure to oversee the advertisements displayed on your application, and collaborate closely with your mediation platform to exclude or prohibit any ads or advertisers that fail to match your criteria.

Enacting Ad Mediation

Implementing ad mediation can be a simple and uncomplicated procedure, particularly if you discover a platform that offers assistance and support during the entire integration process. The specific details of this process may vary based on the mediation platform you use, but the fundamental elements remain unchanged.

Prior to proceeding, begin by selecting an ad mediation platform. Publishers, also known as app developers, must assess and analyze various ad mediation platforms in order to determine the most suitable option for their needs. Monitor their characteristics, endorsed advertising networks, pricing structures, and user evaluations.

After reaching this point, typically there are three primary steps that follow:

• Incorporate the Software Development Kit (SDK). The platform will offer a Software Development Kit (SDK) that the publisher must incorporate into their application. In order to achieve a seamless integration, it is crucial to meticulously adhere to the platform’s documentation.
• Set up ad networks. Publishers have the ability to establish connections and adjust the settings of the advertising networks they wish to incorporate into their mediation arrangement. This procedure may involve inputting API keys, configuring ad units, and ranking networks according to their preferences.
• Conduct an assessment of the integration. Prior to launching, it is crucial to conduct thorough testing of the ad mediation integration. Publishers must ensure the accurate and consistent display of advertisements on all devices and formats, and promptly resolve any faults or anomalies that arise.
• Please be aware that, similar to any new arrangement, it may require a certain amount of time to reach a stable state. Consequently, you may experience suboptimal outcomes during the initial period, which is around the first month. Exhibit patience and be willing to experiment with various platforms or techniques of monetization to determine the most effective approach for you.

In conclusion

Ad mediation technology empowers publishers with greater control over their app monetization, offering an effective solution for managing ad inventory. The system automates the process of selecting advertisements and provides publishers with a level of control and adaptability.

In the present day, there exists a multitude of advertising networks vying for attention. However, ad mediation serves as a means for publishers to easily and lucratively engage with different networks. Although ad mediation may appear intimidating to certain individuals, it typically streamlines app monetization by integrating a single SDK.

Ad mediation systems have demonstrated their advantages, especially for mobile app makers, despite the obstacles and the requirement for increased openness in comparison to web monetization.

If you want to make money from your app, ad mediation is a solution that can help you expand and effectively manage your ad inventory.