What is a Mediation Platform?

Mediation platforms centralize access to multiple ad networks in one SDK integration, leveraging an optimization algorithm to determine which mediated ad network can fill the app developer’s inventory with the highest CPM.

Why are Mediation Platforms Important?

Most importantly, a mediation platform is useful for increasing ad revenue. The mediation platform checks what CPMs the various ad sources are offering and fills the impression opportunity with the highest one. It’s this competition that drives up the CPMs and can oftentimes yield app developers a 3x increase in ad revenue. Some mediation platforms have an auto-optimization algorithm, which can increase performance compared to a traditional waterfall, to save time and resources normally spent managing waterfalls. Additionally, mediation platforms consolidate many ad networks into just one SDK integration. Having too many SDK integrations can affect an app’s performance, slowing it down and causing unforeseen irregularities in the app’s user experience - what’s also known as SDK bloat.

What is an ad mediation platform?

An ad mediation platform is a technology that enables app developers to manage multiple ad networks via one SDK and optimize ad delivery.

Glossary

An ad mediation platform is a technology that centralizes access to multiple ad networks through a single software development kit (SDK) and determines which ads are shown for each impression within an app’s inventory.

How does an ad mediation platform work?

Here’s how a mediation platform works:

When a user opens an app or reaches an ad placement, the app requests an ad.
The mediation SDK connects the app to several ad networks and sends the request to the platform.
The platform reviews which ad networks can fill the request based on the mediation setup, such as waterfall mediation or in-app bidding.
The platform selects an ad network to fulfill the request.
Once a network is selected, the app receives an ad, which is then displayed to the user.

Types of ad mediation methods

Ad mediation platforms can use different methods to evaluate how networks are assessed and chosen.

Waterfall mediation

Waterfall mediation sequentially prioritizes ad networks based on rules set by the developer, such as historical performance, network order, or manual optimization. When an ad request occurs, the platform contacts each network in order of priority until the request is filled or all available options are exhausted. This approach typically requires manual setup and ongoing optimization.

In-app bidding (programmatic mediation)

In-app bidding runs a real-time auction, with all connected demand sources bidding simultaneously for each impression. The mediation platform compares these bids and selects a winning network based on the auction outcome.

Hybrid mediation

Most ad mediation platforms combine both waterfall and bidding, allowing networks that do not support real-time bidding (RTB) to be included.

Why are ad mediation platforms important?

Ad mediation platforms help manage multiple ad networks and maximize the value of ad inventory by creating competition for each impression.

For publishers, or app developers, mediation platforms reduce reliance on a single network. Instead of leaving impressions unfilled or sold at lower prices, developers can make their inventory available to many demand sources. This increases the likelihood that impressions are filled and can lead to higher cost per mille (CPMs). Additionally, mediation platforms simplify operations by allowing developers to manage integrations through a single SDK and a centralized interface, reducing the effort required to maintain and optimize monetization.

Mediation platforms are also beneficial for advertisers as they provide access to a broader range of ad inventory across various apps and publishers, which means more opportunities to reach potential users. With in-app bidding, advertisers can participate in more auctions in real time, which can lead to more competitive pricing and better allocation of ad spend.

Mediation platforms and Adjust

Adjust receives ad revenue data from mediation platforms in two ways. One way is through SDK integrations, which send real-time, impression-level data for each ad impression. The second way is through API integrations, which deliver aggregated, device-level data through scheduled reports. Apps can consolidate revenue data from different monetization partners and analyze it alongside attribution and user data.

When user-level or attributable data is available, revenue can be linked to users and campaigns. With this setup, apps can measure lifetime value (LTV) and return on ad spend (ROAS), and see which networks and ad units are delivering the best results.

For more information on how Adjust can help you measure performance and grow your app business, sign up for free or request a demo today.

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