what is ad mediation and what makes it so important?

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What is ad mediation and what makes it so
important?
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• Ad mediation is a software technology in the
  online advertising platform.
• It specifically designed to act as a mediator
  between the publisher and multiple ad networks.
• Ad mediation organizes the disparate ad
  network where it provides the transparency so
  that it can access the available demand sources
  in a centralized platform.

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• In a digital world, to monetize the app
  through the ads there are so many techniques are
  being used.
• Among that, ad mediation is a very useful
  technique which is used by more knowledgeable
  people.
• What it exactly does is, sending the ad
  requests to multiple ad networks and make sure
  that publishers find the best available networks
  to fill their ad slots.
• The publisher ranks the ad network in order of
  preference and the mediation platform tries for
  the top ad network.

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• In an auction, generally, the item will be
  sold to the person who bids the higher amount.
• In simple, ad mediations also perform the same
  work.
• It gathers all the ad networks in a single
  place and if an ad is requested by an app, the
  auction will be made between the ad networks
  which are capable and willing to provide the ads
  for the particular requirements.
• At last, the ad network which makes the highest
  bid would win the auction and fill the slot.

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• When we compare with the simple ad network
  solution, this ad mediation provides better fill
  rates and higher eCPM since it connects with
  multiple ad networks.
• (eCPM (effective Cost per Mile) can be
  calculated by dividing the total earning with the
  total number of impressions).
• (Fill rates It is the percentage of
  consumption orders got satisfied from the stock
  on hand).
• eCPM and fill rates are the two main
  objectives of ad mediation to increase the
  revenue for the publishers.

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Importance of Ad mediation

• Automated optimization
• In the beginning, publishers were up to manage
  the waterfall by themselves, this eats the time
  and not letting for further improvements.
• But after the ad mediation, with its
  optimization algorithm everything became easier
  for the publisher and also it facilitates to
  yield the higher value.

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• It is very simple
• It is relatively inexpensive and simple where
  there are no complex procedures or rules must be
  followed.
• Mediation increases the flexibility and makes
  it very simple for the negotiators to act as
  problem solvers instead of adversaries.

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• Fill rates are high
• Multiple ad networks have been leveraged to
  cover all the regions from which the ad request
  been generated.
• It ensures that only one ad network can
  effectively fill the requests if it is
  originating from a particular region much better
  than other networks.
• This ensures to give a higher fill rate from
  the apps ad inventory.

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Ad revenue maximization Ad mediation keeps
checking for the ad networks which offer higher
eCPM. The ad network with higher eCPM gets the
higher chances to win the impressions.
Eventually, the publisher gets more revenue
through this competition.
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• SDK integration
• In the past days, for every ad network,
  publishers were supposed to integrate different
  SDK manually.
• But after mediation, only one SDK integration
  is enough to aggregate all the ad networks.
• The manual process takes too much time with the
  poor app performance.
• This might bring the negative thoughts in the
  users mind that the app is very unpredictable
  and inconsistent.
• Ad mediation provides a brilliant solution for
  all these issues.

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• Apps which work with ad networks to monetize
  often use ad mediation
• All the apps do not have their own
  salespeople to deal directly with the
  advertisers.
• These apps obviously will be in need of a
  medium to promote and make revenue.
• They prefer the ad networks to sell their ad
  inventory. Here, the work for mediation platform
  is to manage which ad network gets to serve the
  ads within the app.
• Mediation requires the ad networks to have an
  SDK on the client side.

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• Deeper control
• Mediation is becoming important to ad
  monetization because it enables the deeper
  control over when, how and to whom the ad
  inventory been sold.
• Ad mediation created a standard in an
  advertising field and encourages the ad networks
  for real-time competition.
• It provides so many advantages the main one is
  the publisher can target the particular region
  and choose the ad network which best suits for
  that segment.
• This allows the website owners to create their
  own marketplace and can drive up for revenues.