What is ad mediation?

What is ad mediation

Ad mediation platforms provide publishers with a single convenient place to manage multiple ad networks. The purpose of ad mediation is to drive higher ad revenue through improved eCPMs (effective Cost Per Mille), greater fill rates, and more efficient ad delivery across ad networks. Most ad mediation platforms are designed primarily for apps (mobile ones) rather than websites. However, some platforms now offer solutions for web publishers.

Understanding ad mediation platforms

As we mentioned in a paragraph above, we can divide ad mediation into:

• Ad mediation for the web – examples of ad mediation solutions designed for web environments include Google Ad Manager, Prebid, and Amazon Publisher Services (APS);
• Ad mediation for mobile environments – every app developer probably has heard about MAX by AppLovin or Unity LevelPlay, two of the leading platforms for mobile ad mediation.

Another way in which we can categorize ad mediations is by distinguishing between the waterfall and header bidding models in the case of ad mediation for web:

• Header bidding (alternatively, pre-bidding) is a programmatic method where multiple demand sources, including ad networks and DSPs, compete in real-time for every impression, creating a more competitive auction than in the case of a waterfall. It’s typically implemented using a JavaScript tag placed in the header section of the page;
• Waterfall is sequential: ad networks are prioritized based on historical performance metrics, and the system tries each one in order until an ad is served. It is a more traditional and older approach.

However, if you are a mobile app developer, it’s important to distinguish between in-app bidding (sometimes called mobile header bidding) and waterfall:

• In-app bidding is pretty similar to header bidding, however, the key difference is technical: header bidding runs via JavaScript in a website’s header, while in-app bidding operates through an SDK or API inside the mobile app;
• Waterfall works the same way in web and mobile apps in principle: ad networks are ranked and tried one by one until an ad is served. The difference is mainly in execution, on the web, it runs via JavaScript or ad servers, while in mobile apps, it happens through the SDK.

How ad mediation works

So, now, when we established what header bidding and waterfall are, it’s time to explain how they actually operate:

Ad mediation works quite similarly for web and mobile apps. It gives publishers multiple ad networks access through a single platform, helping them secure the highest possible revenue. The main difference lies in how ad requests happen and how they’re delivered: on the web, it’s mainly through JavaScript tags and header bidding, while in mobile apps, it happens via the app SDK and often relies on in-app bidding. In waterfall setups, if one network doesn’t fill the impression, the request automatically moves to the next ad network, ensuring the highest possible fill rate.

Benefits of ad mediation

• CPM rates typically climb when several advertisers compete for the same ad space. Ad mediation platforms make it possible by connecting publishers to multiple ad networks. Without them, publishers rely on a single network and lose out on the extra competition that drives earnings up. However, please note that competition doesn’t guarantee higher CPMs, it typically increases them, depending on traffic quality and targeting;
• When many ad networks have access to your inventory through mediation, advertisers compete to win each slot. This results in higher fill rates and more of your ad space actually generating revenue.

Choosing an ad mediation platform

• Do a quick background check. See what other users think of the platform – real experiences often say more than marketing promises. Stick with partners who have solid results and a reputation for being dependable and helpful;
• The best mediation platforms don’t work alone. They partner with multiple ad networks to make sure your inventory doesn’t sit empty and your CPMs stay strong. When comparing options, look for those linked with leading networks such as Google AdMob or Google Ad Manager;
• Make sure the mediation platform integrates seamlessly with your tech stack. App developers should confirm the SDK (software development kit) works with iOS, Android, or cross-platform frameworks, and web publishers need to check that it supports their CMS or ad server setup;
• If you wish to understand your ad performance and boost revenue, transparency in reporting is a must. Look for mediation platforms that offer real-time analytics and comprehensive reporting. Leading ad mediation platforms provide live insights into engagement, fill rates, eCPMs, impressions, and more;
• The easier the setup, the faster you can start seeing results. Complicated integrations only slow down your monetization goals, so choose a partner that offers solid documentation and friendly support when you need a hand. In other words, getting started with your mediation platform shouldn’t feel like a headache. Whether you’re adding it to your app or setting it up on your website, the process should be quick, smooth, and clearly explained.

Best practices for ad mediation

Is there any way to increase your chances of success in the ad mediation process?

• We’ve already shared some tips on how to choose the best ad mediation platform. Basically, it’s the very first step to success – so choose wisely;
• The platform should work for you. It should put you in control of your inventory, letting you decide priorities, placements, and performance rules, while the networks compete to fill your ad slots;
• You don’t have to accept every network offered by the mediation platform; instead, choose ones that are trustworthy;
• Keep an eye on key metrics, such as fill rates, eCPM, impressions, click-through rates, session length, and the visibility of your ads. The dashboards your mediation platform provides make it easy to spot which networks or placements aren’t performing as well;
• Often, it’s also worth considering ad mediation support. For instance, with Bidlogic, managing mobile ad mediation becomes effortless. Forget spending hours adjusting your mediation setup. The platform connects with platforms like AppLovin MAX and Unity LevelPlay, automatically optimizing eCPMs, bid floors, and ad network groups, to keep everything performing at its best. That makes it clear why it’s worth partnering with Bidlogic! However, if you want to monetize your website, optAd360 also has a solution for you – let’s get in touch, your ad inventory is precious to us!