Ad Mediation Explained for Game Developers

What ad mediation is, how waterfalls and in-app bidding work, and how to set up mediation to raise ad revenue in your mobile game.

By 1 min readUpdated

Illustration of little robot bidders raising paddles toward a video screen, representing ad networks competing in ad mediation

If your game shows ads, mediation is one of the biggest levers for revenue. Here's how it works.

What is ad mediation?

An ad mediation platform connects your game to many ad networks at once. Each time you can show an ad, the networks compete to fill it, so you earn more than you would with a single network.

Waterfall vs. bidding

Waterfall

Networks are called one after another in an order based on historical eCPM. It's simple but slow, and the order quickly becomes out of date.

In-app bidding

All networks bid at the same time in a real-time auction, and the highest bid wins. Bidding usually raises revenue and cuts down on manual tuning.

Most modern setups are hybrid: bidding networks compete first, with a short waterfall as a fallback.

Key metrics

Metric Meaning
eCPM Revenue per 1,000 impressions
Fill rate Share of ad requests that return an ad
ARPDAU Average revenue per daily active user

Setup tips

  • Start with 3–5 quality networks. More isn't always better.
  • Keep SDKs updated. Old versions often lose bids.
  • Test ad placements with A/B experiments, and watch retention alongside revenue.

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