Want Greater App Growth? OEM Advertising is Your Next Move

What if there was a game-changing strategy that could push your app’s success beyond the usual channels? That’s where OEM advertising enters—the secret weapon savvy app marketers are now using to boost their user acquisition.

But what exactly is OEM marketing, and why is it rapidly becoming the go-to move for app promotion? Let’s dive in and uncover the opportunities that await in this powerful yet often overlooked marketing strategy.

We’re REPLUG, a Berlin-based app marketing agency. Contact us today if you’re looking for solutions to promote your app through mobile marketing.

What Is OEM & What Opportunities Does It Have for Mobile Marketers?

OEM (Original Equipment Manufacturer) marketing has emerged as a new strategy in the mobile app promotion industry, providing unique opportunities for app marketers to reach their target audience effectively.

Using OEM channels for app advertising offers significant advantages, particularly in user acquisition and app growth. But what exactly is OEM marketing, and how can mobile marketers use its full potential?

What is OEM Advertising?

OEM, or Original Equipment Manufacturer, refers to companies that produce hardware or software that other companies rebrand and sell as part of their products.

In mobile marketing, OEM advertising involves pre-installing smartphone apps or prominently displaying them in OEM-operated app stores, such as Samsung Galaxy Store or Huawei AppGallery.

This marketing strategy bypasses traditional app stores, offering app developers direct access to millions of users at the point of device activation.

The Mechanics of OEM Advertising

OEM advertising involves partnerships with device manufacturers like Samsung, Huawei, and Xiaomi, where apps are pre-installed or promoted through native advertising formats.

This approach enhances app visibility and significantly improves user acquisition rates, as users encounter these apps in a non-intrusive manner right from their first interaction with their new devices.

Opportunities of OEMs for Mobile Marketers

OEM advertising presents many opportunities for mobile marketers aiming to optimize their app marketing strategies. Here’s how:

1. Cost-Effective User Acquisition

One of OEM advertising’s biggest advantages is its cost-effectiveness. By targeting users at the device setup stage, marketers can achieve a higher return on ad spend (ROAS) than traditional mobile advertising platforms.

This approach ensures that apps reach a broad user base with minimal investment, making it an ideal strategy for new app launches and ongoing user acquisition campaigns.

2. Enhanced User Experience & Retention

Apps pre-installed via OEM channels often see higher retention rates due to their seamless integration into the user experience. Unlike other forms of app advertising, OEM marketing offers a native feel, making users more likely to engage with the app long-term.

This leads to improved conversion rates and higher lifetime value (LTV) of users acquired through these channels.

3. Direct Access to Premium Audiences

OEM advertising enables app marketers to tap into premium audiences that are more likely to spend on apps.

For instance, targeting users of high-end devices, like the Samsung Galaxy or Huawei Mate series, can result in higher app monetization, as these users typically have higher purchasing power and are more engaged with premium app features.

4. Fraud-Free Advertising

OEM platforms offer a more controlled environment, reducing the risk of ad fraud. Since apps are pre-installed or featured prominently in OEM app stores, the chances of encountering fraudulent activity like click spamming or fake installs are significantly minimized, ensuring that marketing budgets are spent efficiently.

See why working with a trusted agency is a way to succeed in growing your app.

The Future of OEM Marketing in the Mobile Industry

As mobile devices continue to dominate the digital landscape, OEM marketing is set to play an increasingly vital role in app promotion strategies.

With the rise of new OEM Android platforms from companies like Vivo, Oppo, and Xiaomi, app marketers have a growing array of options to reach their target audiences effectively.

Emerging Trends to Watch

Increased Adoption of OEM Platforms: More app developers recognize the potential of OEM marketing, leading to a surge in partnerships with device manufacturers.
Integration with Advanced Analytics: Marketers can now leverage sophisticated attribution models to track the performance of OEM campaigns, offering insights into user behavior and campaign effectiveness.
Cross-Device Targeting: OEM marketing strategies are expanding to include cross-device targeting, allowing marketers to reach users across multiple touchpoints in the mobile ecosystem.

OEM Advertising Predictions for 2024 and 2025

OEM marketing is set to become a main station in the strategies of forward-thinking app marketers. Here’s what to expect in 2024 and 2025:

Increased Adoption of Dynamic Preloads: By 2025, dynamic preloads will become a standard practice for major OEMs. Brands will increasingly favor this approach as it allows for highly targeted app placements, ensuring that apps are pre-installed on devices based on user demographics and behavior patterns. This will lead to an estimated 20% increase in user engagement for apps leveraging dynamic preloads.
Expansion of OEM Partnerships: More OEMs, particularly in emerging markets, will enter the app promotion space, providing brands with access to previously untapped audiences. By 2024, we predict that over 60% of mobile app advertisers will include OEM marketing as a core part of their user acquisition strategy, up from 45% in 2023.
Growth in Alternative App Stores: With Google Play and Apple’s App Store reaching saturation, the growth of alternative app stores operated by OEMs like Samsung, Huawei, and Xiaomi will skyrocket. By 2025, these stores are expected to account for 25% of global app downloads, offering app developers new opportunities to increase visibility and drive downloads.
Enhanced Targeting Capabilities: OEM marketing will see a significant advancement in targeting capabilities. By leveraging AI and machine learning, OEM platforms will offer more precise targeting options, such as real-time user behavior analysis and cross-device tracking. This will enable marketers to fine-tune their campaigns and achieve a 15-20% increase in conversion rates.
Increased Focus on Retention and LTV: As the competition for user acquisition intensifies, OEM marketing strategies will shift towards acquiring and retaining users. By 2025, OEM marketing will focus heavily on increasing users’ lifetime value (LTV) through personalized content and app experiences, resulting in a projected 25% boost in user retention.

Key Stats to Highlight:

OEM and Carrier Channels: In 2023, apps that utilized OEM and carrier channels for user acquisition saw a 30% lower CPA than those relying solely on traditional app stores.
Global Reach: By 2024, OEM marketing is expected to have a potential reach of over 2 billion active mobile devices globally, with significant growth in regions like Southeast Asia, Latin America, and Africa.
Performance Efficiency: According to industry reports, OEM marketing campaigns are expected to deliver a 40% higher ROAS by 2025 than standard mobile advertising methods.
App Installations: Apps pre-installed through OEM channels are projected to achieve 3x higher install rates than apps promoted via other digital marketing strategies.

Our Success Story: Driving Results for a Leading Ride-Hailing App

At REPLUG, we delivered impressive results for a top ride-hailing service looking to expand its reach across Europe, Southeast Asia, and Latin America.

1. The Challenge

The company needed to break through the limitations of traditional marketing channels and fully leverage its existing OEM partnerships to boost user acquisition.

2. The Strategy

REPLUG optimized their OEM marketing by:

Diversifying Channels: We expanded their user acquisition through OEM providers, tapping into new, high-quality audiences.
Performance-Driven Focus: We continuously refined the campaign for maximum ROI by focusing on CPA targets.
Rapid Market Expansion: We unlocked new opportunities in over ten countries, rapidly increasing their user base.

3. The Results

Our approach led to:

Significant User Growth: The campaign delivered a substantial increase in high-quality users.
Optimized Costs: Achieved aggressive growth while maintaining optimal CPA.
Expanded Market Reach: Successfully penetrated new markets, reinforcing the client’s position in the industry.

Conclusion

With traditional channels becoming saturated, OEM marketing gives you access to new, high-quality users and cost-effective placements.

It’s an opportunity to reach untapped audiences at scale, drive user acquisition, and achieve measurable results. REPLUG’s proven expertise in OEM marketing has helped brands expand into new markets and optimize their performance.

Let’s discuss how we can do the same for your app. Contact us today to start scaling with OEM marketing.

FAQs

1. How do OEM ads work?

OEM ads are delivered directly from the manufacturer to the user through the device’s native app store or pre-installed on the home screen. They appear as native recommendations and recommendations, driving high engagement.

2. What are the benefits of OEM marketing?

Key benefits include massive reach, fraud-free traffic, accurate performance forecasting, native ad formats that boost conversion, and gaining a competitive edge as an early adopter.

3. Which OEM platforms should I advertise on?

Top OEM platforms include Xiaomi, OPPO, Vivo, Realme, and Huawei. The best platform depends on your target market and user demographics. To optimize your reach, work with a vendor with direct relationships with OEMs, like REPLUG.

4. How do OEM campaigns compare to other UA channels?

OEM campaigns deliver fraud-free traffic with highly accurate performance forecasting. Due to the native ad formats, conversion rates tend to be higher than those of other channels. However, results can vary, so it’s best to test and compare within your campaigns.

5. How do I get started with OEM marketing?

Partner with a vendor like REPLUG, which has direct relationships with multiple OEM platforms. They can help you navigate the different requirements and optimize your campaigns for each channel. Start with a test budget to find the best-performing OEMs for your app, then scale up from there.