The bottom line
Ad mediation raises ad revenue by making many ad networks compete for the same ad space, and a hybrid of waterfall and open bidding does this best. It pays to start from a baseline of your own data and run it all inside AdMob, which also handles payments.
Key takeaways
- Mediation earns more because it adds competition for your ad space. 0:45
- With a single demand source, you accept whatever price it offers. More networks in the bidding stack push prices up.
- Your own data by format, device and country sets the baseline for any setup. 0:37
- Partner demand differs by region. AppLovin, ironSource and InMobi matter in the US but may have less demand in India.
- Rewarded video has high CPMs, and Unity is a strong video partner.
- The waterfall calls networks one by one at set price floors, and AdMob can tune it for you. 4:30
- Google optimized flows set floors from geography, traffic and history. Manual flows let you set your own floor, such as one dollar.
- Network optimization switches partner priority in real time when a partner's eCPM changes.
- Open bidding replaced the waterfall's slow calls with one live auction. 8:45
- A long waterfall adds latency and limits how many partners you can use. Open bidding calls 10 to 20 partners in parallel with no latency cost.
- It also needs fewer SDKs, so the app is lighter and crashes less. Google pays you on a fixed cycle and the data matches across platforms.
- The future is a hybrid that uses open bidding and the waterfall together. 14:56
- Some partners do very well in open bidding. The rest of your inventory stays in the mediation stack.
Mediation is about adding more players into the mix and saying guys, I've got more people in the bidding stack, help me increase the competition, who's going to bid higher.
Sid Gupta
Chapter summaries
0:00 Build the baseline and the partner list
Before any setup, you need your own audience clusters and a shortlist of partners who want that inventory.
- Segmenting by device tells advertisers who your users are. 2:24
- Each device type carries its own kind of user identification.
- Segments signal a price point to the advertiser.
- Format, device and geo each call for a different strategy.
- The result is clusters of audiences, each treated on its own.
- Analytics must be in place before partners are chosen. 2:39
- Build a team and set up Firebase.
- Partners then say where their demand is highest.
- Make a list of the partners most relevant to you.
- Tell each one about your inventory, then get your stack ready.
3:26 Waterfall flows and Ad Manager tools
A waterfall is set up as separate flows per cluster, and Google Ad Manager adds target pricing, bid data and repeat calls.
- Waterfall is the oldest mediation method, with a flow for each cluster. 3:26
- Networks are layered and called at different CPMs.
- Each cluster of format, device and geo gets its own flow.
- Flow setting is a massive, new exercise.
- Every demand partner has different capabilities.
- Your own segmentation beats the automatic flow once you grow. 4:38
- Google optimized flows suit people just getting started.
- Manual floors can be set by country.
- Doing your own segmentation improves optimization efficiency further.
- Anything bidding under your floor gets no inventory.
- Ad Manager lets you aim for a target eCPM. 5:26
- You tell Google you need one dollar.
- Google builds dynamic flows to reach it.
- A floor CPM works like a manual flow, a bare minimum price.
- Bid distribution shows the number of bids and the average price of each, so you can set the right price.
- Multi call asks one partner for the same placement several times. 7:00
- It pulls more requests from each ad network.
- It is a strong way to lift ROI.
- Work with each partner to learn what is legally allowed.
- Most partners allow it.
7:35 Seasonality and the waterfall's limits
Prices swing with the seasons, and a long waterfall slows every ad request.
- Partner CPMs swing because networks buy and sell demand all the time. 7:35
- Each ad network is people selling ads and buying inventory, so seasonality moves prices.
- Developers used to check data often and build custom groups to learn each partner's seasonality.
- The waterfall itself is a stack of placements, one per partner.
- A waterfall of seven to eight partners adds latency. 8:47
- The app asks one partner for an ad at a set price, and moves to the next if there is none.
- Splitting by geography, format and device needed even more partners.
- The slower load hurt the show rate, so developers had to use as few partners as possible.
9:48 How open bidding works
Open bidding swaps the slow chain of calls for one live auction, with lighter apps and cleaner payments.
- Open bidding is a live auction where the highest bid takes the placement. 9:48
- With bids of $1 and $2, the $2 bidder wins.
- The publisher tells all the networks about the inventory and asks each for its best price.
- Header bidding and open bidding are used here as the same idea.
- Server-level integrations cut the SDK burden. 10:27
- A waterfall needs many SDKs, which makes the app bulky and crash-prone.
- It also needs a bigger integration team to track every SDK update.
- Most SDKs become unnecessary with server-side links.
- Google handles payments across all partners. 11:41
- Each network has its own payment cycle, which strains developers' cash flow.
- Google and Facebook are the two partners that rarely cause payment trouble.
- Google pays on the 21st of each month and collects from the partners itself.
- Numbers now match across dashboards. 12:21
- Before, an InMobi or AppLovin dashboard often disagreed with the mediation platform.
12:51 The hybrid future and why AdMob
Using both methods beats picking one, and running it in AdMob closes the cash gap.
- Choosing one method over the other is a bias. 12:56
- The market is moving to a hybrid of both.
- Certain demand, inventory and supply go to the partners that do well in bidding.
- The rest stays in the mediation stack.
- AdMob gives access to all networks and on-time pay. 13:27
- The strategies work on any platform, but AdMob is the one recommended.
- User acquisition means paying Facebook or ironSource up front, then waiting for ad revenue.
- That gap between spending and getting paid is where developers struggle most.
In the growth library
Sid Gupta and Steve P. Young, Sid Gupta is CEO and co-founder of AppBroda (ad monetization); Steve P. Young is founder of App Masters. Ad mediation turns a single demand source into a competition between many ad networks, raising what each impression sells for. The episode walks through baselines, waterfall setup, open bidding and a hybrid approach, and why running it through AdMob also solves payment delays.
Lessons that draw on this:
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