What Is Ad Mediation And How Does It Work
So what exactly is ad mediation? Ad mediation is a relatively new term and technology in online advertising that refers to the process of acting as an intermediary, or “mediator” between a publisher and several ad networks to which he or she is registered to. Most publishers will usually sign up to multiple ad networks to help maximize the revenue from their inventory, however, managing these multiple networks can often be quite a headache, in addition to the fact that the way in which traditional ad networks operate, does not necessarily guarantee higher earnings from signing up to more ad networks.
Ad mediation is software technology that solves this disconnect. By organizing disparate ad networks, mediation enables transparency and access of all available demand sources into one, centralized platform.
Mediation optimizes key ad network data like: response time, fill rate, eCPM and CTR.
These metrics can then be mapped against filters like: region, device format, connection type, browser, platform and internet service provider in real time, to help webmasters find the most relevant and highest paying demand for their ad supply.
You can always compare all current ad networks’ CPM rates in by countries here.
Why is it important?
Mediation is essential to ad monetization as it enables deeper control over how, when, and to whom ad inventory is sold. Prior to such technology, the selling of ad space was like the wild west. Manual management of individual ad networks was cumbersome and unfortunately the standard. These formalities inundated the marketplace, creating constant shifts in price dynamics. Webmasters craved for more clarity and oversight.
The introduction of mediation technology leveled the playing field by encouraging real-time competition among networks. Publishers can see which networks perform the best and for which Geo segments they wish to target. This insight allows websites’ owners to create their own ad marketplace, so to speak, driving up relevancy and revenue per ad slot as a result.
How does it work?
To help you better understand ad mediation, it is important to paint a picture of how traditional ad networks operate. Whenever a publisher wants to fill a specific spot on his or her website with ads, a request is sent to their ad network, who then looks through its database to find an advertiser and then prioritizes prospective advertisers according to their potential for revenue, using various historical factors and metrics.
When such an advertiser is determined, it then continuously calls upon this advertiser until all the advertiser’s ads have been served, after which it then moves on to the next advertiser with the next highest revenue potential, and continues going down the list in this manner or ‘waterfall’ method.
The disadvantage of a traditional ad network is the publisher is not guaranteed the highest profits for every site their ads are published on.
For example, one advertiser might look to spend $.20 CPM for a 300×200 ad while another advertiser wishes to spend $.05 for the same spot. Since the ad network uses the “waterfall” method, they cater to the advertiser with the top priority, or the higher paying advertiser in this case. The publisher will choose the advertiser willing to pay more for the same ad placement.
Rather than using this waterfall method, Ad Mediation uses a ‘weighted’ system. With this system, the publisher will search through the database to select the advertiser willing to pay the most amount of money for a spot and serve their ad before moving onto the next ad spot to find the next highest paying advertiser. The publisher might also use other factors to determine which advertisers to serve. These factors may include industry type or geographic location where the closest advertisers receive top priority.
With this type of ad mediation method, publishers have realized the true power by signing up with multiple ad networks.
The practice of signing up with multiple networks offers a big benefit because there is a larger supply of networks and advertisers to choose from when serving the higher bids for ad spots.
Increase Ad revenue up to 100% with Adspyglass
Adspyglass is designed to be an easy-to-use, one stop ad networks mediation service for all publishers and website owners across the web.
It will scan all your ad networks to find offers with the highest CPM, so that you can get the most out of your advertising investment.
How it works
- You link your existing ad network’s accounts
- System constantly selects creatives with the highest CPM from ad networks
- It displays these creatives on your website
- AdSpyglass can increase your income up to 100%
AdSpyglass is already being used by over 4000 websites across 8800 ad campaigns serving over 300 Millions ads daily.
The process of ad mediation is simple. Take a look at the example below:
You work with 3 ad networks; let’s call them: Ad Network No.1, Ad Network No.2, and Ad Network No.3.
After the first CPM check, you might find a result like this:
- Ad Network No.1 CPM = $0.50
- Ad Network No.2 CPM = $1.20
- Ad Network No.3 CPM = $0.80
By this we can see that Ad Network No.2 has the highest CPM and will be allocated an ad spot on your website. After the next CPM check, the situation could have changed; maybe Ad Network No.1’s CPM is $1.30. AdSpyglass will then allocate your spot to Ad Network No.1 and so on. All these processes happen on a fly, giving you an easy way of maximising your revenue.
AdSpyglass supports a large number of the most popular and profitable ad networks, including AdsTerra, Exoclick, HilltopAds, TrafficForce, DoublePimp, Adnium, Ero-advertising, TrafficShop, JuicyAds, Reporo, PopCash and much more.
With Adspyglass you can:
- Manage all your ads across multiple networks
- Manage direct ads
- Use Anti AdBlock solution
- Handle unbought traffic
- Create campaigns with flexible targeting settings
- Get detailed reporting all in one convenient location
How to start earning with AdSpyglass:
- Register (link below)
- Link your ad networks accounts
- Add your spots and campaigns
- Insert AdSpyglass codes into your websites
- Expect revenue boost and enjoy using AdSpyglass
Read also Best Ad Networks for publishers
And compare all ad networks CPM rates by countries here: Top Ad Networks