With millions of apps available in various app stores, developers and marketers face fierce competition in capturing the attention of potential users. Moreover, such an increase in competition on traditional channels also increases the price. This is where OEM marketing steps in as an effective user acquisition strategy.
Table of Contents
- What Is OEM Marketing?
- Key Aspects of OEM Advertising
- OEM Marketing and Dynamic Preloads: A Match Made in Heaven?
- Challenges of OEM Marketing and Dynamic Preloads
- OEM Marketing Stats to Keep an Eye On
Is this a groundbreaking strategy for app marketers while they embark on their user acquisition journey? Or should marketers still be careful with it? Let’s find out all the pros and cons of OEM marketing.
What Is OEM Marketing?
OEM marketing, also known as Original Equipment Manufacturer advertising, plays a significant role in user acquisition within the app marketing field. OEM advertising refers to promoting and distributing apps through partnerships with device manufacturers.
Device manufacturers like smartphone and tablet makers have a broad user base and considerable reach.
They possess a unique advantage in connecting developers with their target audience through pre-installed or preloaded apps. OEMs often collaborate with app developers and marketers to include their apps on devices as default or recommended options.
Why Is It Called Dynamic Preloads as Well? What Does That Mean?
They are also called on-device ads or personalized preloads and involve the automatic installation of apps on devices based on user preferences, demographics, or behavior.
This approach goes beyond traditional pre-installations by tailoring the app selection to individual users, thus enhancing user engagement and driving user acquisition. Dynamic preloads take advantage of the user data and insights available to OEMs to deliver a more personalized app experience.
OEMs and Carriers offer an unprecedented opportunity to advertise directly on devices safely and efficiently. Moreover, app developers and marketers can now reach an untapped global audience more cost-effectively and efficiently, expanding their acquisition activities beyond the duopoly (social and search).
The combination of OEM marketing and dynamic preloads can be groundbreaking for app marketers for the following reasons. First, we will cover what OEM advertising can do for app marketers and then move on to combining OEM marketing and dynamic preloads.
Key Aspects of OEM Advertising
OEMs and Carriers providers offer a valid alternative to Meta and Google regarding user acquisition, as advertisers now have the chance to connect with users at the device activation or through the device lifecycle.
It is still gaining traction, and while we wait to see what the end results will be, let’s reflect on a few crucial aspects you should know about when it comes to this app marketing approach.
OEMs can offer to pre-install apps on their devices, providing immediate visibility to users. Pre-installed apps have a higher chance of being noticed and used since users tend to explore the apps available on their devices. It increases the app’s exposure and user acquisition potential.
2. Recommendations and Promotions
They can recommend specific apps to their users through various channels, such as app stores, device settings, or even device-specific newsletters. These recommendations carry significant weight as users trust the OEM’s endorsement, leading to increased downloads and user acquisition.
3. Bundling and Partnerships
Moreover, OEMs and Carriers can partner with app developers and marketers to bundle their apps with related or complementary services. For example, a smartphone manufacturer might partner with a navigation app to have it pre-installed on devices.
Such mutually beneficial arrangement allows developers and marketers to access a broader user base while enhancing the device’s overall user experience.
4. Incentives and Exclusive Content
OEMs can incentivize app downloads by offering users exclusive content, rewards, or discounts. This approach encourages users to engage with the promoted apps, resulting in increased user acquisition. For instance, an OEM might collaborate with a gaming app to provide exclusive in-game items or bonuses to users of their devices.
5. Native Integration
They can integrate app functionality into their devices’ core features and interfaces. This level of integration enhances the user experience and encourages users to engage with the integrated app. For instance, a music streaming app could be integrated with the device’s default music player, providing seamless access to the app’s features.
6. Targeted Advertising
OEMs and Carriers possess valuable user data, including demographics, usage patterns, and preferences.
Leveraging this data, OEMs can offer targeted advertising opportunities to app developers and marketers, allowing them to reach specific user segments effectively. This targeted approach improves user acquisition by directing relevant apps to interested users.
Below, you can see the targeting possibilities available with OEM marketing:
- Device type or model
- Previous engagement
- Other apps installed
OEM Marketing and Dynamic Preloads: A Match Made in Heaven?
By leveraging the reach and influence of OEMs and tailoring app recommendations to individual users, developers can significantly increase app visibility and engagement and ultimately acquire a larger user base.
Access to a Captive Audience
OEMs have a massive user base, and dynamic preloads allow app developers and marketers to reach this captive audience directly. By automatically installing their apps on devices, app marketers gain instant exposure to a large pool of potential users.
This approach eliminates the need for users to actively search for and download the app, significantly boosting user acquisition.
Enhanced Visibility and Discoverability
Dynamic preloads increase the visibility and discoverability of apps. Since the apps are pre-installed or recommended based on user preferences, they are more likely to align with the users’ interests and needs.
This targeted approach ensures that the apps are placed in front of users who are more likely to engage with them, resulting in higher user acquisition rates.
Improved User Experience
Dynamic preloads enable app developers to create a seamless user experience by integrating their apps into the device’s ecosystem. By leveraging the native capabilities and interfaces of the device, app marketers can provide a more integrated and intuitive user experience.
This level of integration enhances user satisfaction and encourages continued app usage, driving user acquisition through positive word-of-mouth and app recommendations.
Personalization and Relevance
With dynamic preloads, app marketers can leverage user data and preferences to offer personalized app recommendations. By understanding users’ behavior, demographics, and usage patterns, OEMs can install apps that align with their interests and needs.
This personalized approach increases the relevance of the preloaded apps, leading to higher user engagement and acquisition.
Trust and Endorsement
Dynamic preloads benefit from the trust and endorsement associated with OEMs. Users tend to trust the device manufacturer’s recommendations, considering them reliable and valuable. This implicit endorsement increases the credibility of the preloaded apps, making users more likely to try them out and become regular users.
Efficient User Acquisition
Dynamic preloads streamline the user acquisition process for app marketers. Instead of relying solely on traditional app store optimization (ASO) techniques and paid advertisements, developers can leverage the OEM’s infrastructure to reach a wider audience without significant additional marketing efforts.
This efficiency translates into cost savings and higher return on investment (ROI) for app marketers.
While this does sound captivating, it must have its disadvantages. We listed a few of them.
Challenges of OEM Marketing and Dynamic Preloads
App developers and marketers may have limited control over the placement and visibility of their apps within the device’s interface. OEMs have the final say in which apps are preloaded or recommended, and developers may not have control over app placement, categorization, or prominence.
Such a lack of control can impact app discoverability and user acquisition, but at the same time, it shows how OEM providers place a great deal of importance on app quality.
Some users may perceive preloaded apps as bloatware or unwanted additions to their devices. Users with limited storage space or prefer a clutter-free interface may uninstall or ignore preloaded apps, resulting in lower user acquisition and engagement rates.
For this reason, OEM marketing takes advantage of a recommendation engine to tailor app promotion to the right audience.
While dynamic preloads increase visibility and initial app installations, sustaining user engagement and retention depends on providing a valuable and engaging app experience. If the preloaded app fails to meet user expectations or lacks ongoing updates and support, users may abandon or uninstall the app, impacting user acquisition efforts.
On top of that, it’s important to mention that with dynamic preloads, users take naturally longer to engage with the app installed. For this reason, it is recommended to let the acquired cohort develop on a 30-day basis.
Competition and Differentiation
Such type of marketing often involves multiple apps vying for user attention within the same device ecosystem. With preloaded apps and recommendations, there is increased competition among developers to stand out and differentiate their offerings.
App marketers need to ensure their apps offer unique value propositions to capture and retain users effectively, as well as ensure a higher-than-average app rating.
Revenue and Monetization
When it comes to apps being pre-installed without direct user consent or payment, that can be a bad case. This can impact app monetization strategies, as developers may rely solely on in-app purchases, ads, or data collection for revenue generation.
App marketers must carefully evaluate the monetization potential and align it with their business goals regarding the pre-installed apps approach.
However, with dynamic preloads, a user gets an onboarding-like experience. Based on their preferences and needs, they get a few recommended apps that they can choose from and download. So, there is an intent from the user actually to have such apps downloaded.
OEM Marketing Stats to Keep an Eye On
Here are some notable OEM marketing statistics from previous years that app marketers should be aware of; for starters, 95% of users download new apps within 48 hours of a new device launch.
1. Preloaded Apps Drive User Engagement
According to a report by Mobile Posse, preloaded apps experience significantly higher user engagement compared to apps downloaded from app stores. The study found that preloaded apps have a 25% higher click-through rate and a 50% lower uninstall rate.
2. OEM Recommendations Influence User Behavior
A survey conducted by Nielsen revealed that 82% of mobile users consider recommendations from OEMs as influential in their app selection process. Users trust OEMs to provide relevant and reliable recommendations, making OEM marketing a valuable user acquisition strategy.
3. App Discovery through Preloaded Apps
Research by Google found that 48% of users discover new apps through preloaded apps on their devices. This highlights the importance of preinstalling apps on devices to improve app visibility and user acquisition.
4. App Engagement Boosted by Preloaded Status
According to a study by Yahoo, preloaded apps enjoy higher usage rates compared to apps that users install themselves. Users tend to interact more frequently with preloaded apps, resulting in increased engagement and user acquisition potential.
5. Personalization Improves App Performance
Research conducted by Adjust indicated that personalized app recommendations from OEMs can increase app retention rates by up to 3 times. OEM marketing can significantly impact user acquisition and long-term engagement by tailoring app suggestions based on user preferences.
6. OEM Influence on App Downloads
A report from Apptentive revealed that 57% of app downloads are influenced by OEM channels, including preloads, app store recommendations, and device promotions. This underscores the importance of leveraging OEM marketing to maximize user acquisition opportunities.
7. OEM Collaboration as a Top Growth Strategy
In a survey by App Annie, 72% of app publishers considered partnering with OEMs as a top growth strategy. Collaborating with OEMs provides access to a wide user base and enhances app discoverability, driving user acquisition.
8. OEM App Store Dominance
OEM app stores, such as Samsung Galaxy Store and Huawei AppGallery, have gained substantial traction. For example, Huawei AppGallery had over 530 million monthly active users and 384 billion app downloads in 2020, highlighting the potential for user acquisition through OEM app stores.
Conclusion on OEM Marketing
Moreover, with the reach and influence of OEMs and tailoring app recommendations to individual users, developers, and marketers can significantly increase app visibility and engagement and ultimately gain a larger user base.
However, when it comes to OEM marketing and dynamic preloads challenges, to avoid them, app developers should focus on the app’s quality and value so that they align with user preferences and expectations.
In addition, exploring strategies beyond OEM marketing, such as ASO, paid user acquisition, and influencer marketing, can lead to even better results as it will be a complete, holistic approach to an app’s advertising.
Are you looking for the right partner to unleash the power of OEMs and Carrier providers? Get in touch with one of our experts and reach new users going beyond the traditional acquisition channels.