Promotion School: what is an advertising mediator?
What is the advantage of an advertising mediator compared to an advertising network, – says Kirill Makarov from Mobio.
Kirill Makarov
If you decide to display ads inside your mobile app, you will encounter the concept of an “advertising mediator”.
We tell you what it is and how it will help you.
What is a mobile advertising mediator?
Mediator is a service for monetization of an application. To connect it, you need to install the SDK. It allows the developer to connect to several advertising networks at once and distribute ad impressions between them so as to earn more from advertising inside the application.
How does the mediator work?
The developer installs the mediator SDK, then connects and configures the advertising networks to which he will sell ads. Then the mediator controls the advertising.
To decide which banner to show, the program receives the user’s characteristics, analyzes them and sells the display to the advertising network that will provide maximum CPM for users with such parameters. The algorithm takes into account the user’s geography, brand and model of the device, gender and age, interests, as well as his behavior.
How does the mediator help?
Increases eCPM
The main reason to use a mediator is to increase advertising revenue. Revenue is measured in earnings from every thousand impressions, i.e. eCPM (cost per mille). The mediator analyzes which CPM on average according to statistics is given by different advertising networks and selects the one that provides the maximum CPM. As a result, the developer gets more money than when working with a single advertising network.
Increases the Fill Rate
The fill rate is the ratio of the number of successful ad impressions to all ad requests. The advertising network does not buy everything and does not respond to all requests. If you want to show a banner to a user from Kyrgyzstan, there may not be the right advertising for such a user at a particular moment.
If the fill rate is low, you miss out on extra advertising opportunities and lose money. When you are connected to several advertising networks through a mediator, it is more likely that there will be advertising for the user, wherever he is. The mediator increases the fill rate and you earn more.
Reduces the number of third-party SDKs
To work with the advertising network, install its SDK. Usually you have to work with several advertising networks and install several different SDKs. The more third-party SDKs there are in the application, the more possible errors in the operation of the application and more time is needed to maintain proper operation.
The mediator allows you to install only one SDK and combine work with all the necessary advertising networks inside. This saves time on development and increases the stability of the application.
Automatic optimization
If you work with several advertising networks, you have to manually adjust the order in which ads are displayed. You decide which advertising network to give the impression to first, and which one later, if the first network does not buy the impression.
Usually, you first send an ad request to the network that provides the above eCPM. But eCPM changes often, as advertisers often come and go. Therefore, we have to regularly recalculate eCPM and revise the rules.
Mediators automatically do this work for you. A complex algorithm takes into account CPM, fill rate and other indicators and provides an optimal order of ad display, which guarantees maximum eCPM.
Saves time
You don’t waste time supporting multiple SDKs and manually optimizing ad impressions.
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