programmatic ad mediation | pavel golubev

Casual Connect Europe ‘16

Programmatic Mediation

Developing Ad Monetization Strategy with

Speaker Background

Daily active users (DAU):4,000,000+

Annual gross:$17M+

Total apps published:3,000+

Appodeal: In-house solution

• Automated Inventory Management

• Ad Revenue Improvement

Appodeal Today

• 40+ employees• 20 genius engineers• $3.1M investments• 4500+ active apps• $1.5M monthly gross• 3B impressions a month

San FranciscoBoston

MoscowBarcelona

Saint-PetersburgUkraine

Building Optimal

Ad Monetization Strategy

Optimal Ad Monetization Setup

App


App

Ad Network

The easiest and most outdated way to monetize is to integrate with a single ad network.


App

Ad Network 1 Ad Network 2 Ad Network 3

Even better is to integrate multiple ad networks.


App

Waterfall Management


Use mediation to manage multiple ad networks.

Waterfall Evolution

App




Single static waterfallHardcoded order of network calls

Waterfall managed by ad opsManual waterfall management / Self-service mediation

Dynamic waterfallAutomated waterfall management / Managed mediation

Programmatic MediationAuction based mediation replaces waterfall

Waterfall Evolution

App




Single static waterfallHardcoded order of network calls

Waterfall managed by ad opsManual waterfall management / Self-service mediation

Dynamic waterfallAutomated waterfall management / Managed mediation

Programmatic MediationAuction based mediation replaces waterfall

Real-time auction based

mediation


App


CPI based Ad Networks

CPM/CPC Ad Networks

How do we utilize the extra human resources spent previously managing the waterfall?


mediation

Every ad network has

a different payout

model and different

optimization techniques.

Tune Up Each Ad Network

App



CPM/CPC Ad Networks

Advertisers Blacklisting

Price FloorsFrequency

CappingBackground

Auctions

Blacklist low-performing advertisers.

Adjust frequency capping. Lower capping equals higher eCPM.

Adjust price floors to sell

impressions at guaranteed

price.

Run auctions in the background,

during gameplay.


mediation


App


320x50 Banners


CPM/CPC Ad Networks



CappingBackground

Auctions

Interstitials Video Native Ads




Reassess ad formats.

Each format should be set up separately with its own waterfall.


mediation


mediation


mediation


mediation

A Little Trick — Break Down Into TiersApp


320x50 Banners


CPM/CPC Ad Networks



CappingBackground

Auctions





Premium Tier Tier 1 Tier 2 Leftovers

Group your impressions into several groups — premium, standard and leftovers.

Set up a separate waterfall manager for each tier.


mediation


mediation


mediation


mediation

Why it is important to tier impressions?

Premium Tier

Standard Tier

Leftovers Tier

Network A$10 eCPM

Network B$5 eCPM

Network C $1 eCPM

Network B$5 eCPM

Network C$0.5 eCPM

Network A$0.4 eCPM

Network C$0.2 eCPM

Network B$0.2 eCPM

Network A $0.1 eCPM

Some ad networks focus on premium

traffic.

Others specialize in low value - high

volume traffic.

Optimal Ad Monetization SetupApp


320x50 Banners


CPM/CPC Ad Networks



CappingBackground

Auctions


Tier 1 Premium Tier Tier 2 Leftovers

RTB Marketplace

That is even before considering RTB marketplaces.

MoPub, Rubicon, Liverail, AdX.

You want to be a part of all of them because they have different set of advertisers.


mediation

Private and Open RTB MartkeplacesApp


320x50 Banners


CPM/CPC Ad Networks



CappingBackground

Auctions



RTB Marketplace

Private Marketplace

Open Marketplace

All marketplaces split into open market places and private marketplaces.

These two verticals should be managed completely separately and in completely different ways!


mediation

RTB Marketplace Setup

RTB Marketplace

Private Marketplace

Open Marketplace

Price FloorsBackground

AuctionsProgrammatic

Deals

Set up direct programmatic deals on the private marketplace.

Set up multiple price floors to break down your inventory into multiple

impressions.

Host auctions in the background to match higher paying advertiser

pacing.



320x50 Banners


CPM/CPC Ad Networks



CappingBackground

Auctions



RTB Marketplace

Private Marketplace

Open Marketplace



Deals

Direct Sales at Fixed CPM

Perform direct sales to advertisers at Fixed CPM.

If you don’t sell yet, you might be losing a lot of money.


mediation



320x50 Banners


CPM/CPC Ad Networks



CappingBackground

Auctions



RTB Marketplace

Private Marketplace

Open Marketplace



Deals


Ask for a lower commission

Negotiate better terms with ad networks and RTB marketplaces.

You can get a much better revshare if you offer good volume.


mediation



320x50 Banners


CPM/CPC Ad Networks



CappingBackground

Auctions



RTB Marketplace

Private Marketplace

Open Marketplace



Deals



Have another look.

This is how optimal ad monetization strategy looks like.


mediation


Programmatic mediation is a solution that efficiently automates most components of optimal ad monetization strategy.

App


320x50 Banners


CPM/CPC Ad Networks



CappingBackground

Auctions



RTB Marketplace

Private Marketplace

Open Marketplace



Deals




mediation

Automation is a Key to Success

0

5

9

14

18

Ad network

Set of ad networksMediation

Mediation w/ RTB

Dynamic waterfall w/ RTB


$17.00

$13.00

$10.00

$8.00

$6.00$5.00

Automation is a Key to Success

0

5

9

14

18

Ad network

Set of ad networksMediation

Mediation w/ RTB

Dynamic waterfall w/ RTB


$17.00

$13.00

$10.00

$8.00

$6.00$5.00

Programmatic Mediation would increase earnings by at least 30%.


Focus on your product and direct sales to advertisers.

Don’t waste your time on waterfall management.

App


320x50 Banners


CPM/CPC Ad Networks



CappingBackground

Auctions



RTB Marketplace

Private Marketplace

Open Marketplace



Deals




mediation

Focus on Direct Sales

0

8

15

23

30

Ad n

etwo

rk

Set o

f ad

netw

orks

Med

iatio

n

Med

iatio

n w/

RTB

Dyna

mic

wate

rfall w

/ RTB

Prog

ram

mat

ic M

edia

tion

Dire

ct S

ales

$25.00

$17.00

$13.00$10.00

$8.00$6.00$5.00

Direct Sales would increase your earnings by 30-50% more.

programmatic ad mediation | pavel golubev

Technology