AdtoApp, the programmatic mediation platform for in-app advertising, came out of stealth following a $6m investment from Run Capital. The California-based start-up’s real-time mediation service enables clients to serve ads to mobile apps using multiple networks. What makes AdtoApp different is an auto-adjustable algorithm that filters the list of demand-side buyers every three hours to present the ones that make the most sense depending on location and target audience.
Example of AdtoApp Optimisation Cycle
The company mediates between over 20 mobile marketing networks including Admob, MoPub and Amazon, facilitating the best one for an app publisher. Whilst most developers aim to reach a global audience, a single network usually can provide stronger access to demand regionally. AdtoApp aims to solve this restriction by giving publishers access to various networks across the globe, managing them from a single platform.
The company has a team of over 15 technology-driven services in Europe, Asia and the US with a market capitalisation of over $500m. Nikolay Evdokimov, CEO and Founder, AdtoApp, who previously founded AppInTop and SeoPult, explains:
“AdtoApp is able to double eCPMs because of our adjustable algorithm – we are continuously updating the list of demand-side buyers. Plus, we have no inventory of our own to manage, so can prioritize our client’s needs and achieve amazing results in terms of both eCPM and fillrate.”
The company plans to use the funds to add to its pool of around 100 staff. According to Denis Kravchenko, CTO and Co-founder, AdtoApp, the company’s team of developers is a major cost center:
“The way payouts work in all the networks now, there’s a huge delay between an impression happening and the publisher getting the money. We tend to pay more and pay more often.”
During beta testing, EmojiNation, the Emoji game, increased eCPM from $1.50 to $3.50. Its fill rate rose from 70% to 100% and revenue increased by 200% overall. App publisher Techno Bears grew daily eCPM from $1 to $2.40 and fill rates shots up from 80% to 100%. Kravchenko explains that the platform acts like an “auction of auctions”. He told AdExchanger:
“An ad network has a conflict of interest: Either they lose their profit margin for the sake of the publisher or they increase their profit margin by discriminating against the publisher. But the whole point of mediation is to make ad networks compete over inventory.”
With ever more mobile apps flooding the market, eMarketer predicts mobile games revenue from downloads and in-app purchases to reach $3.04bn this year. In line with an increase in apps, mobile in-app ad revenue is predicted to grow three-fold by 2018, according to App Annie and IDC research. Andrey Romanenko, Managing partner at Run Capital and AdtoApp board member, says:
“This industry is surging and we see huge potential for AdtoApp to monetize apps in the US and on a global front. I’m thrilled to be a part of this team of veteran product visionaries and architects.”