Key Takeaways

• Ad mediation connects your app to multiple ad networks through a single SDK integration

• It automatically selects the highest-paying ad network for each impression

• Publishers can increase revenue by 20-40% compared to using a single ad network

• Two main models exist: traditional waterfall and modern in-app bidding

• Leading platforms include AppLovin MAX, ironSource LevelPlay, and Google AdMob

The App Monetization Puzzle

Mobile app publishers face a constant challenge: how to make money without ruining the user experience. If you've been in this space for a while, you've probably heard industry folks throw around terms like "mediation," "waterfall," and "in-app bidding."

But what does ad mediation actually mean for your bottom line?

In simple terms, ad mediation is a technology that lets app developers connect to multiple ad networks through just one SDK. Instead of individually integrating and managing 5, 10, or even 20 different ad networks (nightmare scenario), you can use a single platform to handle everything.

How Ad Mediation Actually Works

When a user opens your app and triggers an ad opportunity, the mediation layer springs into action. It has two main approaches to decide which ad network gets to show their ad:

The Traditional Waterfall

In the traditional waterfall model, the mediation platform follows a predetermined sequence:

1. It first contacts the top-ranked ad network (usually based on historical eCPM data)

2. If that network doesn't have an ad or doesn't meet your price floor, it moves to the next one

3. This process continues down the "waterfall" until an ad is served

It's kinda like asking your richest friend for money first, then moving down your contact list until someone agrees to pay.

The problem? Sometimes your third or fourth choice might actually be willing to pay more for a specific impression, but they never get the chance to bid becuse they're lower in the sequence.

In-App Bidding (The New Kid)

The newer and increasingly popular approach is in-app bidding (also called header bidding in the web world):

1. The mediation platform simultaneously calls all connected ad networks

2. Each network submits their bid in real-time

3. The highest bidder wins and serves their ad

This creates a genuinely fair auction where every network has a shot at winning each impression, typically resulting in higher revenue for publishers.

According to AppLovin, publishers who switch from waterfall to in-app bidding often see revenue increases of 20-30%.

Why Publishers Love Ad Mediation

The benefits go beyond just simplifying your tech stack:

1. Higher Fill Rates

By connecting to multiple demand sources, you're much less likely to have unsold inventory. If one network has no ads to show, another one probably will.

2. Increased Revenue

More competition for your ad space naturally drives up prices. Udonis reports that publishers using mediation can see eCPM increases of 30-50% compared to using a single ad network.

3. Less Development Headache

Instead of managing multiple SDKs and relationships, you can focus on one platform. This saves development time and reduces your app's size (which users appriciate).

4. Better Analytics

Mediation platforms offer unified reporting dashboards that give you a clear picture of your overall monetization performance across all networks.

Choosing the Right Ad Mediation Platform

Not all mediation platforms are created equal. Here are some of the most popular options:

When evaluating platforms, consider:

• Which ad networks they support

• Their fee structure (some take a revenue share)

• Support for the ad formats you want to use

• Quality of analytics and reporting

• Ease of integration with your app

Common Pitfalls to Avoid

Even with mediation, there are ways to leave money on the table:

1. Not testing enough networks - The more demand sources you have, the better your chances of maximizing revenue

2. Poor waterfall configuration - If you use the waterfall model, regularly update your network rankings based on performance

3. Ignoring user experience - More ads doesn't always mean more money if users start abandoning your app

As Publift points out, balancing user experience with monetization remains critical even with sophisticated mediation technology.

Is Ad Mediation Right for Your App?

If you're already showing ads in your mobile app, mediation is almost certainly worth implementing. The only exceptions might be:

• Brand new apps with very low user numbers

• Apps with extremely specific advertiser relationships

• Apps where even a slight performance hit would be problematic

For everyone else, the benefits usually far outweigh any downsides. Even smallish apps can see significant revenue lifts from proper mediation implementation.

What's Next in Ad Mediation?

The technology continues to evolve, with several trends emerging:

1. More AI-powered optimization - Platforms are getting smarter about predicting which networks will perform best

2. Privacy-focused solutions - As IDFA and AAID tracking becomes more restricted, mediation platforms are developing new targeting approaches

3. Advanced creative formats - Support for interactive, playable, and AR/VR ad formats is expanding

According to adjoe, publishers should expect mediation platforms to become even more sophisticated in handling first-party data while respecting user privacy.

The Bottom Line

Ad mediation isn't just a nice-to-have anymore—it's practically essential for serious app publishers. By creating competition for your ad inventory and simplifying management, it helps you earn more while doing less work.

Not a bad deal, right?