In the race for mobile app success, tapping into high-intent users before your competitors do is the ultimate growth hack. As app marketers and developers look for ways to enhance their user acquisition (UA) strategies, Original Equipment Manufacturer (OEM) advertising has emerged as a powerful tool.

Imagine you’re launching a fitness app in your region. Instead of relying on users to search for your app in the app store, you partner with a device manufacturer. With the Play Auto Install solution for example, your app is directly available to thousands of high-intent users as soon as they set up their device. By tapping into this direct access, you can see immediate engagement, as users are already primed to interact with your app. With the ability to tap into large, high-intent audiences, OEM traffic offers unique opportunities to deliver targeted, cost-efficient campaigns.

In this blog, we explore the role of OEM advertising in user acquisition, its benefits, and how it can drive growth for your app.

What is OEM Traffic?

OEM traffic refers to user acquisition traffic generated through partnerships with device manufacturers or pre-installed apps. A report from Apptentive highlights that 57% of app downloads are influenced by OEM channels. This means that brands who utilize OEM advertising have direct access to a large portion of mobile users who are already inclined to engage with suggested apps. 

By integrating apps directly into the device ecosystem, unlike intrusive in-app ads, OEM advertising feels like a natural part of the device ecosystem. This unique access comes through three primary placements: 

•Preloads (Play Auto Install): Apps are ready to install when the user is setting his newly bought device, ensuring immediate visibility and access for users.

•Personalised App Recommendations: Devices suggest apps based on usage patterns and preferences.

•On-Device Notifications: Users receive timely notifications or updates about relevant apps directly on their device screens.

App developers utilizing OEM placements report an average 20-30% increase in engagement within the first month of a campaign compared to traditional display ones. These placements create a frictionless user experience, ensuring access to apps with minimal user effort, making OEM traffic one of the most efficient and effective channels for user acquisition.

Reaching High-Quality Audiences

One of the standout features of OEM traffic is its ability to target high-intent users at a critical moment in their app discovery journey. By reaching users directly on their devices, OEM advertising taps into audiences that are already primed to engage with new apps—whether through app suggestions, or timely notifications. This direct engagement ensures that users are more likely to convert into long-term app users. 

Moreover, device-specific targeting allows for precision targeting based on factors such as:

  • Device type (e.g. Xiaomi, ZTE, Vivo etc.)
  • OS version
  • Language

This highly targeted approach boosts campaign performance by ensuring that your app reaches the right users at the right time, increasing the likelihood of engagement and conversion.

Improved Performance Metrics

OEM campaigns often outperform other UA channels when it comes to conversion rates. With placements like recommendations, apps are placed in front of users at a time when they are actively exploring or ready to engage with new apps. As a result, the install-to-action ratio tends to be significantly better than other marketing channels.

Additionally, apps acquired through OEM strategies often show superior engagement and retention rates. Because the app feels more native and integrated within the device’s ecosystem, users are more likely to adopt and continue using the app in the long term. This higher retention rate translates into improved customer lifetime value (CLV).

From a cost-efficiency perspective, OEM traffic offers better ROI by acquiring high-value users at a lower cost per install (CPI). This makes it a scalable and sustainable option for growth.

Scalability, Market Penetration and Emerging Regions

One of the most powerful aspects of OEM advertising is its ability to scale quickly. Through partnerships with leading device manufacturers like Xiaomi, Oppo,and Vivo etc., developers have access to vast audiences, particularly in markets where OEM penetration is high.

As smartphone penetration grows globally, from mature economies to rapidly expanding regions, OEM partnerships enable direct app placement on devices, bypassing the need for app store reliance. This strategy provides a seamless way to connect with untapped audiences, making it a powerful solution for brands aiming to expand their reach and drive efficient, global user acquisition.

Customization and Branding Opportunities

OEM advertising provides unique opportunities for app visibility. Collaborating with OEMs allows you to position your app strategically through placements such as preloads or recommendations, ensuring it reaches users at the right time. These placements can help your app stand out and drive user engagement by delivering targeted exposure in a high-visibility format. While specific branding options may vary, working closely with OEMs enables tailored approaches that align with your campaign goals.

Brand Safety and Fraud Prevention

One of the critical advantages of OEM advertising is its inherent brand safety. Unlike open ad networks, which can sometimes be vulnerable to fraudulent installs, low-quality traffic, or exposure to inappropriate content, OEM traffic offers a much higher level of security. Since OEM placements are often controlled directly by the device manufacturer and are integrated into their native ecosystems, there is less risk of brand exposure to unsafe or non-compliant environments. This creates a more reliable and trustworthy user acquisition channel, ensuring that your investment is directed toward real users.

For marketers, this means that not only can they expect a higher-quality user acquisition, but they can also have peace of mind knowing that their brand is being presented in a secure and safe environment.

Synergy with Other Channels

OEM traffic doesn’t operate in isolation. It can complement other programmatic, social, and organic UA strategies, offering a more holistic approach to user acquisition. By combining OEM traffic with insights from other channels, you can fine-tune your targeting and improve campaign performance across the board.

Additionally, data from OEM campaigns can provide valuable insights that enhance targeting for future campaigns, optimizing the user acquisition process across multiple channels, creating a feedback loop that continually improves campaign results.

Challenges and How to Overcome Them

While OEM advertising presents numerous benefits, there are also challenges to consider:

•Partnership Management: Working closely with OEMs is crucial to ensure transparency and clear reporting. Maintaining strong relationships with OEMs can help streamline campaign execution and successful outcomes. 

•Localization: Tailoring your messaging for different devices and regions is essential for ensuring your campaigns resonate with local audiences.

Future of OEM Traffic

As mobile ecosystems evolve, OEM traffic will only continue to grow in importance. With trends such as the rise of 5G, super apps, and an increasingly complex mobile landscape, OEM traffic will remain a vital UA channel. In particular, as device manufacturers continue to innovate and develop their own ecosystems, the potential for targeting new users in Europe and other regions will only expand, bringing more opportunities for brands. 

OEM advertising represents a powerful and scalable strategy for user acquisition, delivering high-quality users, improving performance metrics, and enhancing engagement. By leveraging this channel developers can drive sustained growth and long-term success in today’s competitive mobile ecosystem.

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Author

Lucjan Exner is Appnext Head of Sales for Europe

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