Everything You Need to Know About Google AdMob Mediation

As of October 2024, around 97% of Android apps and 95.27% of iOS apps were free. Most of these apps rely on ads to make money, and app developers are always on the lookout for ways to improve their ad revenues.

AdMob is the preferred monetization platform among app and game publishers, with 9 out of 10 Android apps with ad network SDKs using it to display ads.

With this blog, we will tell you all about Google AdMob Mediation—from the basics to its in-depth benefits—and how it can help take your ad revenue to new heights.

What is AdMob Mediation?

AdMob Mediation is a free feature of Google AdMob that enables app developers to serve ads from multiple networks through a single integration. It helps you maximize ad revenue by choosing the best-performing ad formats and network partners for your app. 

There are two types of mediation in Google AdMob: bidding and waterfall. 

Either way, AdMob Mediation helps you manage all ad sources in one place, ensuring each ad request is sent to multiple networks to find the highest-paying option.

How Does AdMob Mediation Work?

Google AdMob Mediation acts as a bridge between your app and ad networks, automatically selecting the best ads based on factors such as performance, targeting, and eCPM (effective cost per thousand impressions). This setup ensures a steady ad supply, boosting revenue potential.

Waterfall Mediation Model

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In the Waterfall model, ad networks are arranged in a fixed order. Each ad request starts with the highest-priority network (typically with the highest historic eCPM). If that network cannot fill the request, the request moves sequentially down the list until an ad is served or no networks remain.

Example of Waterfall Mediation

For instance, let’s say you have three ad networks: Network A with a $10 eCPM, Network B with $7, and Network C with $5; the ad request will first go to Network A. If no ad is available, it moves to Network B, and finally to Network C, until an ad is shown or all options are exhausted.

While effective for getting competitive bids, the Waterfall model is based on user-provided or historical eCPM data that doesn’t allow real-time bidding. This means the chosen network may not always have the highest-paying ad. This gap is addressed by the Bidding model.

Bidding Model

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The Bidding model enhances the Waterfall approach by enabling ad networks to compete in real-time auctions. Instead of following a predetermined list, this model allows all participating networks to submit bids simultaneously for each ad request, ensuring the highest-paying ad is selected in real time and maximizing revenue.

In a Bidding setup, ad networks place their bids for an ad request, with the highest bid winning. This approach eliminates the need for historical eCPM data or fixed priorities, as the competition occurs dynamically for every ad spot.

Example of Bidding Mediation

Consider three ad networks with the following historical eCPMs: Network A ($10), Network B ($7), and Network C ($5). In the Bidding model, all three networks submit bids simultaneously. If Network B offers the highest real-time eCPM for that ad unit, it wins the auction despite its historical eCPM being lower. This system boosts revenue by allowing networks to bid higher when they have valuable ads to offer.

Also read: Real-Time Bidding Guide for App Publishers

Hybrid Model: Combining Waterfall and Bidding

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AdMob Mediation enables developers to integrate both the Waterfall and Bidding models into a hybrid setup. This approach combines real-time bidding with the traditional waterfall method, allowing developers to benefit from both systems.

How Does the Hybrid Model Work?

If the winning ad source has the highest eCPM among the waterfall networks, it serves the ad first. Otherwise, it’s ranked according to its eCPM value among the waterfall networks, and the process continues as in a normal waterfall model.

Example of a Hybrid Model

In a hybrid scenario, suppose Network A (waterfall source) has a $10 eCPM, while Network B (bidding source) typically has a $7 eCPM but bids $12 during the auction. The ad request first triggers the bidding auction. Since Network B’s bid is $12, it is placed in the waterfall with other networks. If no waterfall network bids higher than $12, Network B will serve the ad, maximizing revenue for that impression.

Benefits of AdMob Mediation

Using multiple ad providers through AdMob Mediation offers several key advantages for app publishers looking to maximize ad revenue:

Higher Revenues:

AdMob Mediation boosts competition among ad networks for your inventory, driving up your effective revenue per thousand impressions (eCPM). This leads to a noticeable increase in overall revenue.

Optimized Ad Serving:

With smart algorithms, AdMob Mediation delivers ads from top-performing networks based on user location, device type, and historical data. This optimization ensures more relevant ads, better engagement, and a seamless experience for users.

Seamless Integration:

If you’ve already integrated a single ad network, adding AdMob Mediation is straightforward. It allows you to focus on app development while the system manages the complexities of ad network mediation.

Better Fill Rates:

By using multiple ad networks, mediation minimizes unfilled ad requests, ensuring maximum use of your ad inventory and boosting your revenue potential.

Reduced Dependence on a Single Network:

Relying on just one ad network is risky. Policy changes or performance drops can hit your revenue hard. Mediation offers a safety net, reducing reliance on any single supplier and ensuring consistent revenue.

Ad Formats Supported by Google AdMob

Google AdMob supports five different ad formats:

1. Banner Ads: Rectangular ads displayed within an app’s layout, refreshing at set intervals to show new ads while users stay on the same screen. This format is easy to implement.
2. Interstitial Ads: Full-page ads that appear at natural breaks in your app, such as after completing a game level.
3. Rewarded Ads: These ads allow users to earn in-app rewards, like coins or extra lives, by watching videos or completing tasks. They are interactive, with a maximum reward time of 30 seconds.
4. Native Ads: Fully customizable ads that blend seamlessly with your app’s design, providing a cohesive user experience.
5. App Open Ads: Displayed on your app’s loading or splash screen when users open or return to the app.

Also read: Google Ad Formats Explained

Third Party Ad Networks Supported by Google AdMob

Final Thoughts

If you’re an app or game developer, you can maximize your revenue by combining the AdMob ad network’s reach with its efficiency. 

Yieldmonk can help you out if you’re ready to boost your ad revenue. You can get to know more about us here.