Ad Mediation is a platform app developers use to connect multiple ad networks to their apps. This creates an arena for ad networks to compete for their ads to be displayed. Higher competition among ad networks results in competitive eCPMs and more ad revenue for the app developers. Ad mediation serves as an ad network optimizer and helps in-app monetization.
How does Ad Mediation work?
Ad Mediation automates ad revenue optimisation through the waterfall model based on the parameters set by the publishers. When an ad request is sent, the ads that yield the highest CPM for that impression will be served based on the analysis by the mediation platform.
If the top ad network does not fill the ad request, the mediation platform tries the next preferred ad network until it serves the ad request. This ensures the publishers find the best available ads to fill their ad slots.
However, advanced ad mediation platforms use a ‘weighted waterfall bidding system,’ prioritizing ad networks by weight. The ad network’s weight is determined by its performance compared to others.
App developers fill high-performing ads from each network before moving on to lower-paying ads. App developers have reported an average 40% increase in overall ad revenue from a weighted network mediation system.