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Madhouse Tells Advertisers to Seek Compensation from Guohead

Madhouse PR, 4/11/12

Shanghai-based mobile advertising network operator Madhouse has issued a statement about a SmartMad ad display error caused by Guohead. Due to the special handling by Guohead, developers of Guohead Mediation Platform will have up to 75% of ads displayed outside the mobile phone screen, which results in abnormally high drop in the click-through rate (CTR) and loss of developer's income. Madhouse requests the affected developers to seek for compensation they deserve as soon as possible.

Since December 5, 2011, without Madhouse's knowledge, mobile in-app mediation platform Guohead altered the SmartMad SDK. In Guohead Android SDK v1.2.1 released on December 5, 2011, the ads would display outside the mobile phone screen up to twice for every three requests. In Guohead Android SDK v1.2.2 released on December 20, 2011, v1.2.3 released on December 31, 2011, and v1.2.5 released on February 6, 2012, the ads would display outside the mobile phone screen up to three out of every four requests, which means up to 75% of ad impression become invisible to end-users after Guohead's alteration. When using the Guohead Android SDKs, the CTR of SmartMad ads could drop as low as a quarter of the usual values, and the developers lose 75% of their income.

As a core service under Madhouse, SmartMad is the largest and most intelligent mobile ad network in China. SmartMad helps advertisers reach target audiences through an intelligent advertising platform, and creates monetization opportunities for developers. With 260 mln unique users in 2011, SmartMad now covers 82% of China's total mobile internet users, and supports all major mobile operating systems including Android, iOS, and Windows Phone.

Keywords: wireless mobile advertising Madhouse mobile Internet Guohead

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