by Mark Thielen | Nov 05, 2012
Mobile usage is skyrocketing – that much is clear. However, usage is currently developing even faster than marketers are able to react to it. The technology to accomplish mobile advertising is there and ample inventory exists. Yet many publishers are continuing to fail to recognize the huge sales potential in their unused advertising space.
Unsold does not mean free
Recent studies reveal that the fill rate of small publishers is between 10 and 20 percent. The capacity of advertising space among larger publishers is generally much higher. But devaluing the unsold inventory as “free space” ignores the realities of the mobile medium. Any publisher that neglects to leverage the potential of its non-reserved ad inventory is missing a lucrative opportunity to drive revenue. That’s why the industry term “mediation” is useful; it makes more sense to focus on the need for mediation between supply and demand. This balance is achieved when unsold inventory is mediated via partner networks.
Driving revenue automatically
Savvy publishers have cottoned onto this approach and are already earning good money by optimizing the capacity of their unsold advertising space with the help of mediation networks. Provided that the publisher’s chosen ad server possesses interfaces to the corresponding ad networks, the mediation booking process is simple.
So how does it work? The mobile ad server receives the request from the end device and communicates it via the “conventional” ad server. All ad-server-to-ad-server calls are then transmitted via the cable-based high-speed data network. In this way, the query as to whether a premium campaign is available or whether delivery via mediation is possible reaches the relevant parties. The mobile ad server then takes it upon itself to supply the appropriate ad via the mobile phone’s network. If the ad server has interfaces to several mediation networks, publishers need to have received an approval ID from the third-party marketers in advance, and this is checked automatically to ensure seamless delivery.
Look forward to getting ahead
What this means for publishers is that choosing the right ad technology offers enormous savings potential for the future. After all, the mobile market is only getting more complex, so successful advertising through the mobile medium will require increasing levels of coordination with every passing month. Emerging developments in mobile advertising – including new standards, technologies, features and real-time bidding methods – are already visible on the horizon. An ad server that simplifies this process of mediation in the midst of growing complexities in the market will create opportunities to advertise more efficiently and generate more sales.