What is Ad Mediation? Ad mediation is an important process in the digital advertising industry that allows businesses to manage multiple ad networks seamlessly. This complex technique involves using specialized platforms to optimize ad placement across various networks, to maximize revenue potential and improve campaign performance. See the details below of AdsNextGen to understand more about this advertising method!
1. What is Ad Mediation?
Ad mediation involves managing multiple ad networks using a single SDK. The purpose is to help publishers improve advertising revenue, fill rates, and efficiency in their advertising space. Ad mediation assists publishers and app developers in maximizing the revenue potential of each ad slot by effectively coordinating the display of ads from multiple networks within individual ad spaces on apps or websites.
In-app bidding is considered the most profitable form of ad mediation. Before in-app bidding, the waterfall model was commonly used for ad mediation strategies.
2. How does it work?
When we learn about what is Ad Mediation, we can see how necessary this method is for generating revenue from advertising on platforms. So, join AdsNextGen to learn more about the working mechanism of this advertising technique now!
Ad mediation technology seeks out the most suitable ad inventory from ad networks for publishers, then proceeds to dispatch ad requests to boost fill rates. The process involves four main steps:
- Publishers incorporate the ad mediation platform’s SDK into their app, allowing it to collect audience insights.
- When the app is accessed, the SDK solicits an ad from the mediation platform.
- The platform then selects the most profitable ad from its network pool based on revenue potential.
- The chosen ad is then showcased, generating revenue for the publisher.
3. What is in-app bidding?
4. What are the benefits of advertising mediation?
4.1 Monetization from the application is well-controlled
Monetization from your app is in good hands. When you’re looking to make money from your app, it’s super important to have total control. Back in the day, buying and selling ad space was a real mess to handle before ad mediation tech came along. But now, with ad mediation, publishers can call the shots on how and to whom they dish out their ad space. Even though the mediation process is usually automated, lots of platforms let you customize, so you can manually put your favorite ad networks at the top of the list.
4.2 Manage multiple advertising networks
Advertising mediation offers a range of benefits, including the ability to manage multiple advertising networks simultaneously. By utilizing advertising mediation platforms, businesses can efficiently handle and optimize their ad placements across various networks in one centralized location. This streamlines the process of monitoring performance metrics, enhancing targeting strategies, and maximizing revenue potential.
Managing multiple networks through mediation also provides access to valuable data insights and analytics, enabling businesses to make informed decisions and adjustments in real time to improve overall advertising effectiveness and return on investment.
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4.3 Higher e-CPM rates
By leveraging advertising mediation platforms, businesses can access and compete for ad inventory from multiple networks, increasing the chances of securing higher e-CPM rates. This competitive bid environment fosters the opportunity for improved monetization of ad placements, ultimately leading to a more lucrative revenue stream for publishers and app developers. Additionally, the mediation process facilitates dynamic ad network selection to ensure the highest-yielding ads are displayed, contributing to enhanced e-CPM rates and overall profitability.
4.4 Only one SDK is needed
Ad mediation allows publishers to efficiently handle multiple ad networks through a single platform and SDK, eliminating the need to navigate individual ad network interfaces to manage and optimize campaigns. This centralized approach provides a comprehensive overview of all ad networks. Besides, it also helps expand opportunities to maximize advertising space sales and improve campaign performance on a larger scale.
4.5 Better fill rate
A higher fill rate indicates that a larger portion of your ad space is generating revenue. However, relying solely on a single ad network or a few can constrain your fill rate due to limited demand, resulting in unused ad inventory and missed revenue opportunities.
Ad mediation platforms address this challenge by providing access to a broader range of ad networks. Thereby increasing the likelihood that every ad request will be matched with an advertiser. Ultimately improving fill rates. When one network is unable to fill an ad request, the platform automatically directs the request to another network. Repeat this process until the ad slot is filled. This effectively enhances your fill rate and ensures consistent ad inventory sales.
4.6 Advertising revenue is optimized
By utilizing ad mediation platforms, businesses can access a wide range of ad networks, maximizing the potential for revenue generation. This multi-network approach allows for the selection of the most lucrative ad placements based on real-time data and bidding competition, ultimately leading to higher eCPMs and increased profitability. Furthermore, the ability of ad mediation platforms to automatically route ad requests to the highest bidding network ensures that ad inventory is consistently monetized at the most favorable rates, maximizing advertising revenue potential for publishers and app developers.
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5. Types of Ad Mediation
5.1 Web-based vs. In-app ad mediation
Both of these methods maximize advertising revenue. At the same time, they can improve the relevance of ads. However, each method has its own adjustments to suit each case, specifically as follows:
| Web-based ad mediation | In-app ad mediation | |
| Description | Focus on websites. Rely on browser traffic to maximize revenue. |
For applications available on mobile devices. Can manage multiple advertising networks at the same time to maximize profits. |
| Benefits | Wide reach, and diverse traffic because of the combined use of many types of advertising networks | Designed for mobile experiences |
| Who is it for? | For publishers with strong websites | For publishers with mobile apps |
| Drawbacks | Ad blockers pose many potential challenges The application has little personalization |
Complex SDK integration |
5-2 Header vs waterfall bidding
| Header bidding | Waterfall | |
| Description | Real-time bidding Application with all networks helps increase competition |
Apply sequentiality, prioritizing ad networks first, and filling ad slots in order. |
| Benefits | Compete to increase advertising revenue Sell to the highest bidder |
Simple implementation Predictable thanks to history |
| Who is it for? | Aiming to maximize revenue Complex handling |
Simple handling There is a clear hierarchy of advertising networks |
| Drawbacks | Complex technique. It takes a lot of resources to manage | There are cases of low revenue, where lower-ranked networks are able to deliver higher eCPMs, or top-ranked networks are unable to fill ads. |
5-3 Programmatic Ad Mediation
Programmatic Ad mediation uses technology to automatically facilitate the buying and selling of ad inventory in real-time. There’s a more sophisticated approach to ad mediation that leverages machine learning algorithms and real-time bidding. These technologies measure individual ad impressions in real time, aiming to maximize the revenue potential of available advertising space. By automatically selecting the most profitable ad networks, programmatic mediation enables app publishers to optimize their revenue streams effectively. It can ensure that the published advertising space is as profitable as possible.
6- Implementing Ad Mediation
Implementing ad mediation can be a simple process if you have the technical platforms in place to support you throughout the integration process.
To get started, the first step involves choosing the right ad mediation platform for your needs. After choosing the right platform, you need to follow 3 main steps as follows:
- SDK integration: The platform will provide an SDK to integrate into the application
- Configure ad networks: Publishers can link and set up ad networks they want to incorporate into their mediation setup. This process may require entering an API key, setting up ad units, and arranging networks based on their preferences.
- Integration testing: Before the official launch, it’s important to thoroughly test ad mediation integration. Publishers must verify that ads display correctly across different devices and formats, promptly resolving any issues or discrepancies that arise.
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7- Factors to consider when choosing an ad mediation platform
7-1 User reviews
You should read reviews from other publishers and developers who have used this platform. Their reviews can help you gain an overview and better understand the value, performance, and reliability of this platform. This can be a factor in helping you make a better decision.
7-2 Level of support
7-3 Pricing model
Checking the price of the platform and choosing the price package that suits your finances is an important and indispensable factor. Many platforms will charge a flat fee. Many platforms will collect your advertising revenue directly.
7-4 Cross-platform support
Seek out a platform that accommodates multiple operating systems and devices. The greater the range of compatibility, the more extensive the reach of your ads, potentially enhancing your revenue opportunities.
7-5 Platform features
Evaluate the array of features offered by each platform. Key features to consider include:
- Ad optimization tools that automate adjustments based on performance metrics, user behavior, and revenue potential.
- Automated reporting that delivers timely and precise data on ad performance, revenue, and user engagement. This simplifies analysis, enabling quick trend identification and saving time while minimizing errors.
- Real-time bidding (RTB) capability for real-time auctions of ad inventory, maximizing revenue by selling each ad slot at the highest price possible. Competition among multiple advertisers for each impression boosts ad revenue potential.
8- Common pitfalls when Ad Mediation
What is ad mediation? Besides the above benefits, what risks does it have? Find out now below!
8-1 Increased complexity
To deal with this, you can start by keeping things simple and sticking to a few top-notch ad networks. Then, as you get the hang of how ad mediation works, you can slowly grow and add more networks. Also, teaming up with platforms that offer solid training and all the resources you need can help you ace the whole ad mediation setup.
8-2 Ad quality concerns
When it comes to ad quality, the worry is that ad mediation platforms might show crummy ads that could wreck the user experience. You know, like those annoying, irrelevant, or just plain bad ads that make people wanna leave. To tackle this, it’s super important to set really high standards for ad quality and make it crystal clear to the ad mediation platform what kind of ads are okay. Gotta keep an eye on things too, like regularly checking out the ads on your app and working closely with the mediation platform to boot out any ads or advertisers that don’t make the grade.
8-3 Lack of control
8-4 Technical challenges
9- The best mobile advertising mediation platforms
9-1 Google AdMob
9-2 Applovin
AppLovin offers a robust app mediation solution by incorporating MoPub into AppLovin Max, granting app publishers extensive access to a wide range of ad networks and DSPs. This platform emphasizes transparency, robust analytics, and user experience enhancements. Tailored for publishers of all sizes, AppLovin Max prioritizes premium ads and brand safety to optimize ad delivery.
9-3 InMobi
InMobi is a prominent mediation platform known for its comprehensive services for publishers. Established in India in 2007, it has evolved from focusing solely on contextual mobile advertising to encompass various aspects of app mediation. The platform provides access to a broad global demand through its exchange and offers an SDK.
10- FAQs about Ad Mediation
10-1 Does ad mediation negatively impact app performance?
When ad mediation is improperly implemented, it can affect app performance, particularly if the SDK is bulky or causes delays in ad loading. Nevertheless, the majority of ad mediation platforms are crafted to mitigate their impact on app performance.
10-2 What is the difference between an ad network and ad mediation?
Ad mediation enables publishers to oversee multiple ad networks via a single platform, enhancing ad fill rates and eCPMs by choosing the most suitable network for each ad request. Conversely, an ad network serves as a service linking advertisers with publishers to populate ad inventory with ads.
10-3 Is it true that ad mediation is suitable for all apps?
Ad mediation is ideal for various apps and websites. Especially those with substantial traffic and diverse user demographics, aiming to boost ad revenue by leveraging multiple ad networks and enhancing ad fill rates. In contrast, niche apps or websites with limited traffic may find direct deals with specific ad networks more effective.
10-4 How long does it take to integrate an ad mediation platform?
The integration time for an ad mediation platform depends on the app or website’s complexity. Generally, basic integration ranges from a few hours to a few days.
The definition of “what is ad mediation” has been explained and compiled by AdsNextGen with relevant information through this article. In short, ad mediation is a strategic solution for businesses looking to streamline their advertising efforts across multiple networks. By harnessing the power of technology and data-driven decision-making, ad mediation helps organizations increase fill rates, optimize ad revenue, and ultimately improve overall campaigns.
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