Mediation, how it helps you maximize yield for your mobile app?

What is mediation?

Mediation increases your mobile app revenue by calling a series of third-party ad networks to fill an ad request, ordered by expected yield. Each ad network has the opportunity to fill an ad request; however, if one ad network does not fill the request, the next ad network in the sequence gains an opportunity.

So now we are going to learn the life cycle of a mediation request

How does mediation work?

For each mediation request from a publisher's mobile app, Ad Manager uses yield groups targeting to determine which ad networks are eligible to compete and then assembles a list, or chain, of ad networks to receive that request in sequence.

Publisher's mobile app sends an ad request to Ad Manager

An ad request is sent to the Ad Manager ad server using the Google Mobile Ads SDK and special third-party ad network adapters.

Ad Manager determines which line items and yield groups are eligible for the request

Ad Manager assembles a list of eligible line items and yield groups based on inventory targeting.

Ad Manager creates a chain of ad networks to call in mediation

If one or more yield groups match the ad request, a single, sequential list, or "chain," of Mediation networks contained in the eligible yield groups is compiled, ordered from highest to lowest expected yield using historical performance data or user-entered CPM values. Ad Exchange uses real-time auction-winning bids. Mediation sorts ad network tags by CPM in decreasing order, using the estimated CPM for each ad network tag and the real-time Ad Exchange CPM.

The estimated CPM reflects either the "default CPM" entered for each mediation network or the "dynamic CPM" if automatic data collection is activated. If Ad Manager collects data automatically, the estimated CPM reflects the historical CPM observed for that ad network tag adjusted for impression discrepancies with Ad Manager recorded impressions.

Fill rate is only used to calculate the expected value of the entire mediation chain for competition in dynamic allocation. Fill rate is not used to discount estimated CPM for an ad network tag.
If the number of competing network tags in a mediation chain exceeds the system limit, Ad Manager uses ad network tag fill rate, CPM and calculated order to discard ad tags and meet the limit with a maximum possible expected value.
Ad Exchange always appears at the end of a returned Mediation chain since it's guaranteed to fill the impression. Ad network tags with a lower expected yield than Ad Exchange are excluded from the chain.

Ad Manager compares the mediation chain's expected yield with other Ad Manager line items

The mediation chain competes against other Ad Manager line items in dynamic allocation based on its expected yield. Ad Exchange competes with mediation networks as part of a mediation chain. However, if Ad Exchange or another Ad Manager line item returns a higher bid than any mediation network, the Ad Manager or Ad Exchange creative is returned directly to the publisher and no mediation chain is returned.

The expected yield of the mediation chain is calculated using each mediation network tag’s CPM and the historical fill rate of all mediation network tags in the chain, including the real-time CPM from Ad Exchange.

This expected yield value is used by Ad Manager when the mediation chain competes with other demand channels, such as Ad Manager line items, in dynamic allocation.

Ad Manager sends the mediation chain to the publisher's mobile app

The mediation chain, with Ad Exchange at the end, is returned to the publisher's mobile app.

Google Mobile Ads SDK sends a request to each ad network until an ad is returned

Using the returned mediation chain, the mobile app's SDK can then use the network adapters to send a request, or "callout," to each ad network until an ad is returned. If none of the ad networks in the mediation chain are able to fill the ad request, the request will be unfilled and no automatic passback to the ad server is triggered. Activate automatic data collection or ensure that each mediation network’s CPM is adjusted periodically according to the bids actually received by each partner.