Delivered at Casual Connect Europe 2016 For years, advertisers were using programmatic ad buying solutions to get the most out of their ad budget. Now, publishers can level the playing field with programmatic ad mediation. Programmatic ad mediation increases revenue for publishers by engaging ad networks in real-time auction-based competition for every ad impression.

1. Casual Connect Europe ‘16
Programmatic Mediation
Developing Ad Monetization Strategy with

2. Speaker Background
Daily active users (DAU):
4,000,000+
Annual gross:
$17M+
Total apps published:
3,000+

3. Appodeal: In-house solution
• Automated Inventory
Management
• Ad Revenue
Improvement

4. Appodeal Today
• 40+ employees
• 20 genius engineers
• $3.1M investments
• 4500+ active apps
• $1.5M monthly gross
• 3B impressions a month
San Francisco
Boston
Moscow
Barcelona
Saint-Petersburg
Ukraine

5. Building Optimal
Ad Monetization Strategy

6. Optimal Ad Monetization Setup
App

7. Optimal Ad Monetization Setup
App
Ad Network
The easiest
and most
outdated way
to monetize is
to integrate
with a single
ad network.

8. Optimal Ad Monetization Setup
App
Ad Network 1 Ad Network 2 Ad Network 3
Even better is
to integrate
multiple ad
networks.

9. Optimal Ad Monetization Setup
App
Waterfall
Management
Ad Network 1 Ad Network 2 Ad Network 3
Use mediation
to manage
multiple ad
networks.

10. Waterfall Evolution
App
Waterfall
Management
Ad Network 2 Ad Network 3
Waterfall
Management
Single static waterfall
Hardcoded order of network calls
Waterfall managed by ad ops
Manual waterfall management / Self-service mediation
Dynamic waterfall
Automated waterfall management / Managed mediation
Programmatic Mediation
Auction based mediation replaces waterfall

11. Waterfall Evolution
App
Waterfall
Management
Ad Network 2 Ad Network 3
Waterfall
Management
Single static waterfall
Hardcoded order of network calls
Waterfall managed by ad ops
Manual waterfall management / Self-service mediation
Dynamic waterfall
Automated waterfall management / Managed mediation
Programmatic Mediation
Auction based mediation replaces waterfall
Real-time
auction based
mediation

12. Optimal Ad Monetization Setup
App
Waterfall
Management
CPI based
Ad Networks
CPM/CPC
Ad Networks
How do we
utilize the
extra human
resources
spent
previously
managing the
waterfall?
Real-time
auction based
mediation
Every ad
network has
a different
payout
model and
different
optimization
techniques.

13. Tune Up Each Ad Network
App
Waterfall
Management
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
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.
Real-time
auction based
mediation

14. Optimal Ad Monetization Setup
App
Waterfall
Management
320x50
Banners
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
Auctions
Interstitials Video Native Ads
Waterfall
Management
Waterfall
Management
Waterfall
Management
Reassess ad
formats.
Each format
should be set
up separately
with its own
waterfall.
Real-time
auction based
mediation
Real-time
auction based
mediation
Real-time
auction based
mediation
Real-time
auction based
mediation

15. A Little Trick — Break Down Into Tiers
App
Waterfall
Management
320x50
Banners
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
Auctions
Interstitials Video Native Ads
Waterfall
Management
Waterfall
Management
Waterfall
Management
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.
Real-time
auction based
mediation
Real-time
auction based
mediation
Real-time
auction based
mediation
Real-time
auction based
mediation

16. 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.

17. Optimal Ad Monetization Setup
App
Waterfall
Management
320x50
Banners
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
Auctions
Interstitials Video Native Ads
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.
Real-time
auction based
mediation

18. Private and Open RTB Martkeplaces
App
Waterfall
Management
320x50
Banners
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
Auctions
Interstitials Video Native Ads
Tier 1
Premium
Tier
Tier 2 Leftovers
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!
Real-time
auction based
mediation

19. RTB Marketplace Setup
RTB Marketplace
Private
Marketplace
Open
Marketplace
Price Floors
Background
Auctions
Programmatic
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.

20. Optimal Ad Monetization Setup
App
Waterfall
Management
320x50
Banners
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
Auctions
Interstitials Video Native Ads
Tier 1
Premium
Tier
Tier 2 Leftovers
RTB Marketplace
Private
Marketplace
Open
Marketplace
Price Floors
Background
Auctions
Programmatic
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.
Real-time
auction based
mediation

21. Optimal Ad Monetization Setup
App
Waterfall
Management
320x50
Banners
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
Auctions
Interstitials Video Native Ads
Tier 1
Premium
Tier
Tier 2 Leftovers
RTB Marketplace
Private
Marketplace
Open
Marketplace
Price Floors
Background
Auctions
Programmatic
Deals
Direct Sales at
Fixed CPM
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.
Real-time
auction based
mediation

22. Optimal Ad Monetization Setup
App
Waterfall
Management
320x50
Banners
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
Auctions
Interstitials Video Native Ads
Tier 1
Premium
Tier
Tier 2 Leftovers
RTB Marketplace
Private
Marketplace
Open
Marketplace
Price Floors
Background
Auctions
Programmatic
Deals
Direct Sales at
Fixed CPM
Ask for a lower
commission
Have another look.
This is how optimal
ad monetization
strategy looks like.
Real-time
auction based
mediation

23. Programmatic Mediation
Programmatic mediation is
a solution that efficiently
automates most
components of optimal ad
monetization strategy.
App
Waterfall
Management
320x50
Banners
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
Auctions
Interstitials Video Native Ads
Tier 1
Premium
Tier
Tier 2 Leftovers
RTB Marketplace
Private
Marketplace
Open
Marketplace
Price Floors
Background
Auctions
Programmatic
Deals
Direct Sales at
Fixed CPM
Ask for a lower
commission
Real-time
auction based
mediation

24. Automation is a Key to Success
0
5
9
14
18
Ad network
Set of ad networks
Mediation
Mediation w/ RTB
Dynamic waterfall w/ RTB
Programmatic Mediation
$17.00
$13.00
$10.00
$8.00
$6.00
$5.00

25. Automation is a Key to Success
0
5
9
14
18
Ad network
Set of ad networks
Mediation
Mediation w/ RTB
Dynamic waterfall w/ RTB
Programmatic Mediation
$17.00
$13.00
$10.00
$8.00
$6.00
$5.00
Programmatic Mediation would increase earnings by at least 30%.

26. Optimal Ad Monetization Setup
Focus on your product and
direct sales to advertisers.
Don’t waste your time on
waterfall management.
App
Waterfall
Management
320x50
Banners
CPI based
Ad Networks
CPM/CPC
Ad Networks
Advertisers
Blacklisting
Price Floors
Frequency
Capping
Background
Auctions
Interstitials Video Native Ads
Tier 1
Premium
Tier
Tier 2 Leftovers
RTB Marketplace
Private
Marketplace
Open
Marketplace
Price Floors
Background
Auctions
Programmatic
Deals
Direct Sales at
Fixed CPM
Ask for a lower
commission
Real-time
auction based
mediation

27. Focus on Direct Sales
0
8
15
23
30
Adnetwork
Setofadnetworks
Mediation
Mediationw/RTB
Dynamicwaterfallw/RTB
ProgrammaticMediation
DirectSales
$25.00
$17.00
$13.00
$10.00
$8.00
$6.00
$5.00
Direct Sales would increase your earnings by 30-50% more.