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📺 Monetization guide · 2026

Ad mediation for mobile games: how it works and which to choose

Mediation lets several ad networks compete for every ad your game shows. Set up well, it is one of the simplest ways to raise ad revenue. Here is how bidding and waterfalls work, how the main platforms compare, and how to avoid hurting retention.

The short answer

Ad mediation uses one SDK to let many ad networks compete for each ad your game shows. Modern setups use in-app bidding, where networks bid in a real-time auction, often alongside a waterfall that calls networks in priority order. The main platforms are AppLovin MAX, Unity LevelPlay and Google AdMob mediation. More competition usually means more revenue per impression, but placement and frequency matter as much as the platform, because ads that annoy players cost more in retention than they earn.

How mediation works

Without mediation, a game shows ads from one network and accepts whatever price it pays. With mediation, the game asks the mediation SDK for an ad; the SDK gathers bids or calls networks through adapters, picks the best offer and shows it. You manage all networks from one dashboard.

Bidding versus waterfall

In-app biddingWaterfall
How it worksNetworks bid for each impression in a real-time auctionNetworks are called one by one in order of expected price
ProsFairer competition, less manual tuningWorks with networks that do not support bidding
ConsNot every network or format supports itNeeds constant manual price tuning; can leave money on the table

Most games today use bidding for the main networks and keep a small waterfall for the rest. Support varies by adapter and format; for example, Google's AdMob documentation notes that AppLovin bidding through AdMob does not support banner ads.

The main mediation platforms

PlatformNotes
AppLovin MAXWidely used mediation with SDKs for Unity, native platforms and an official Unreal plugin
Unity LevelPlayUnity's mediation platform, formerly ironSource; deep Unity integration
Google AdMob mediationMediation built into AdMob, with adapters for many networks; strong Google demand

Networks also appear inside each other's mediation: Unity documents how Unity Ads bids inside LevelPlay, AppLovin MAX and AdMob or Ad Manager. Choose a platform on SDK quality, reporting, supported networks for your markets, and how well it works with your engine, then test.

Ad formats

FormatBest useRisk
Rewarded videoOptional reward: extra lives, double coins, a hintLow if optional and valuable
InterstitialFull-screen at natural breaks, such as between levelsHigh if too frequent
BannerSmall, persistent placementsLow revenue, can cheapen the look
App openWhen the app returns from the backgroundAnnoying if overused

Placement and frequency

  • Show interstitials only at natural breaks, never mid-action.
  • Cap frequency per session and per minute.
  • Give players a choice: rewarded ads they opt into perform better and feel fairer.
  • Skip ads for new players during onboarding.
  • Offer a paid "remove ads" option; some players happily pay to avoid them.

Consent and privacy

In the EEA and UK, personalised ads require consent collected through a consent management platform; Google's User Messaging Platform supports the IAB Transparency and Consent Framework. On iOS, cross-app tracking requires the App Tracking Transparency prompt, and ad networks need their SKAdNetwork identifiers in your app. Children's games have stricter rules; see our kids game rules guide.

Testing

  • Use test ad units and register test devices; clicking real ads in testing can get an account suspended.
  • Use each platform's mediation debugger or test suite to check every adapter loads.
  • Test on slow connections and low-end devices.

Measuring success

Watch ad revenue per daily active user, impressions per user, fill rate and eCPM by network, and above all the effect on retention. A change that lifts ad revenue by 10% but lowers day-seven retention can lose money over a player's lifetime. Run A/B tests on frequency and placements. Our mobile KPIs guide explains the metrics.

A setup checklist

  1. Pick the mediation platform and list the networks you will add for your top markets.
  2. Integrate the mediation SDK and the adapters, following each adapter's version requirements.
  3. Set up consent for the EEA and UK and the ATT prompt for iOS before the first ad request.
  4. Add SKAdNetwork identifiers and app-ads.txt on your developer website so buyers can verify your inventory.
  5. Create ad units per placement so each one can be measured and tuned separately.
  6. Test every network with test ads, then launch to a small share of players first.

The app-ads.txt file, published on the developer website listed in your store page, tells advertisers which networks are authorised to sell your inventory; missing or wrong entries can reduce demand.

Ads, purchases or both?

Most casual games combine ads with in-app purchases. Our article on ads vs IAP vs hybrid helps decide the balance, and Unreal monetisation covers Unreal-specific options.

Getting help

We set up mediation, consent and analytics in Unity and Unreal mobile games and tune placements after launch. See hyper-casual games or request a quote.

Sources: Unity: in-app bidding with Unity Ads · AppLovin: MAX integration · Google AdMob: mediation with AppLovin · Google: User Messaging Platform · Apple: App Tracking Transparency. Checked October 20, 2026.

Related: Hyper-casual games · Mobile game development · Get a quote

FAQ

Quick answers ❓

What is ad mediation in mobile games?

A system that uses one SDK to let many ad networks compete for each ad impression in your game, usually raising revenue compared with using a single network.

What is the difference between in-app bidding and a waterfall?

In-app bidding runs a real-time auction where networks bid for each impression. A waterfall calls networks one by one in order of expected price. Most games use bidding with a small waterfall for networks that cannot bid.

Which is better: AppLovin MAX, Unity LevelPlay or AdMob?

It depends on your engine, markets and networks. All three are widely used; compare SDK quality, reporting and supported networks, then test on your own game.

What ad format earns the most in games?

Rewarded video usually earns well and feels fair because players choose to watch. Interstitials can earn more but hurt retention if shown too often.

Do I need user consent to show ads?

For personalised ads in the EEA and UK, yes, through a consent platform. On iOS, cross-app tracking needs Apple's App Tracking Transparency prompt. Children's games have stricter rules.

Related guides

Ads vs IAP → Playable ads →

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