Ad Mediation is a technology that allows publishers to distribute and monetize their advertising inventories more efficiently.
Publishers usually have more advertising inventories than they can sell on their own. Since ad mediation is working through multiple ad networks, it enables publishers to optimize the distribution of their advertising inventory. That means they can match the right networks to the right inventory. This way publishers can optimize the fill rates of their inventories and their eCPM (effective cost per mille) so they can get the most out of every impression.
The main benefit of ad mediation is that it enables publishers to distribute between different ad networks with just a single SDK. Thus it makes the delivery of advertising inventory to the most suitable ad network a lot easier because app developers don’t have to manage the distribution individually for every single ad network.
Ad mediation is usually working according to the waterfall system. It is based on a list of integrated networks which are prioritized according to their previous sales. When choosing an ad network, ad mediation solution starts requesting the network at the top of the waterfall. It’s then making its way down to the next one if the first ad network hasn’t got any availability. This way ad mediation can guarantee to always generate the highest paid ad for the inventory of the publisher.