How does Mobile Advertising Mediation work?

Mediators are allocating traffic between mobile ad source partners in order to maximize mobile advertising revenue.

Here is a simplified explanation of how Madgic does it:

1. connect with as many mobile ad networks as possible trying to make the most of their features
2. monitor ad networks’ response time and fill rate in real-time at least by site/app, country, platform, and carrier
3. monitor the eCPM, the CPC, and the rate of invalid clicks at least by an ad network, by site/app, and by country, automatically, as close to real-time as possible
4. monitor the CTR in real time, at least by ad network, site/app, country, platform and carrier, if possible by banner, by page, by user segment, etc.
5. use multiple ways to reduce the response time and to limit the number of outgoing ad requests sent to ad networks
6. when receiving an ad request from a publisher:

– detect at least country, carrier, and platform, then perform a targeting process in order to list all possible ads and ad sources for this ad request
– estimate the eCPM corresponding to each ad/ad source
– compute a score mostly based on the estimated eCPM, allocate a probability to each ad/ad source based on this score, then draw a random number in order to select an ad/ad source according to the probabilities
– send ad requests to ad networks until an ad is found or the maximum time for replying to this ad request is reached
– reply to the incoming ad request with the details of the selected ad campaign.