Mobile app supply chains are clogged with duplication, opacity, and outdated practices. Here’s how publishers can clear the pipes and reclaim revenue.
Are you ready to get your hands dirty? Because we have a lot to clean up in the mobile supply chain.
Mobile app monetization is a tangled mess of pipes, valves, and mystery leaks. In-app programmatic supply chains can be more convoluted than their web-based counterparts. But that doesn’t mean the web is perfect either.
In this edition of The Wrapper, we’ll examine what’s clogging the system and what publishers can do to keep the revenue flowing.
Why Are App Supply Chains So Convoluted?
Structural and technical quirks add layers of confusion and bog down mobile app supply paths. But rampant auction duplication is the leading culprit.
The same ad impression may be rebroadcast and routed down dozens of chains, sometimes hitting 16 hops or more, which can balloon the total auction volume up to three times compared to the web.
Duplicated auctions create congestion, making it extremely challenging for ad ops teams to optimize yield and accurately track where their inventory is flowing. Additionally, app-based environments have always lagged behind the transparency standards found on the web.
Web publishers widely use tools like ads.txt and sellers.json to control and validate who sells their inventory. But app-ads.txt has not been universally adopted, despite data indicating that it drives publisher revenue and deters fraud in mobile.
This lack of visibility means mediation layers, SDKs, and intermediaries flourish, adding extra costs, delays, and more complexity for publishers aiming to maximize revenue.
But Google AdMob introduced mandatory app verification through app-ads.txt implementation for new apps in January of this year, so maybe other platforms will follow suit soon.
Publisher Priorities: Knowledge and Early Warning Signs
Publishers don’t have to wait on platform changes to clean up their mobile supply chains, though.
Adam Sadur, VP of App Monetization at People Inc., told AdMonsters that publishers need education as a defense against mobile fragmentation.
“While somewhat similar to the web, there are important nuances of how demand connects to supply via various mediation layers and SDKs,” said Sadur. “Understanding how your inventory is being passed to buyers can only help facilitate the publisher’s ability to connect directly and transparently to buy-side partners and advertisers.”
Sadur also advised ad ops teams to stay alert for early signs of fragmentation. As supply path optimization (SPO) for mobile apps gains traction, it’s essential for publishers to closely track bid efficiency and yield metrics to get a clear picture of how they distribute their inventory and how it affects pricing, he said.
The Path to Simpler, Stronger Monetization
The combination of educating teams, adopting transparency protocols, and using the latest mobile SPO tools like app-ads.txt can help publishers reduce waste and recapture lost revenue, Sadur said.
For publishers looking to take the next step in their mobile supply chain transformation, Sadur will be sharing tactical insights at the 2025 Sell Side Summit in Nashville in his session, “Rethinking Mobile Monetization for the Swipe Generation.”
Hope to see you in the Music City!