As global mobile device usage continues to show remarkable growth— mobile subscribers are projected to increase to 6.3 billion by 2030, encompassing 74% of the population. With users spending an average of 4.8 hours daily on mobile devices—more than half of their digital time—capturing their attention at the right moment is critical for brands.
OEMs (Original Equipment Manufacturers) are emerging as pivotal players in transforming how brands engage with their target audiences. By leveraging their unique position within the device ecosystem, OEMs provide direct access to users through pre-installed apps, app recommendations, and native device notifications, offering seamless and impactful solutions for driving user engagement and acquisition.
As the mobile-first world becomes the norm, embracing OEM strategies is no longer optional—it’s essential for brands aiming to build deeper, more integrated connections with their audience.
How OEMs help drive brand visibility and engagement?
In mobile advertising, OEMs act as a bridge between apps and users, enabling brands to effectively reach their audience at key touchpoints throughout the device lifecycle. Here’s how OEMs help drive brand visibility and engagement:
- Pre-installed Apps: By ensuring that brands’ apps come pre-loaded on devices, OEMs provide immediate visibility to users from the moment they start their device, enhancing the chances of app adoption.
- App Recommendations & Listing: OEMs personalize the user experience by offering app suggestions based on user behavior, device usage, and preferences, ensuring relevant app placements at the right time. Also, they feature apps directly in proprietary app stores, making discovery easier and faster.
- On-device Notifications: OEMs facilitate direct engagement through push notifications, delivering timely and personalized messages to users right on their devices, enhancing the relevance and impact of brand messaging.
- Device Ecosystems: Through device-specific ecosystems (like Android or iOS), OEMs offer an integrated experience that allows brands to leverage cross-device connectivity, ensuring seamless engagement across different user touchpoints.
- First-time Setup and Customization: OEMs often provide brands with the opportunity to be included in the initial device setup process, increasing their chances of being noticed by users during the critical first interaction with the device.
These placements ensure a seamless, non-intrusive user experience while delivering high visibility and relevance for advertisers.
The Rise of OEMs in the Advertising Ecosystem
The rise of OEMs as dominant players in the advertising ecosystem continues to accelerate as we approach 2025. With approximately 7.21 billion smartphone users globally, representing about 90% of the world’s population in 2024, the influence of OEMs in mobile advertising has never been more pronounced— offering brands an access to millions of untapped users.
In the United States, 82% of adults own a smartphone, and Apple alone commands 57% of the U.S. market share. As mobile advertising continues to grow, global mobile ad spending is expected to reach nearly $400 billion— with OEM ecosystems, driving an increasing share of this digital spend.
The rise of OEMs is equally impactful in India, with over 146 million smartphone shipments in 2023. In a country where mobile internet penetration has reached 52%, OEM channels are a crucial avenue for advertisers looking to reach both urban and rural users.
Since 2017, OEM giants like Xiaomi and Samsung have increased their global market share, especially in regions where traditional app discovery methods like app stores have limited reach. For example— Eastern Europe has seen a 30% growth in smartphone penetration over the last five years, with markets like Romania and Bulgaria leading the charge. In these markets, 40% of app installs are driven by OEM channels, according to a GSMA report, highlighting their efficacy in fast-growing regions.
OEMs are no longer just hardware manufacturers—they have become integral to how brands connect with consumers, from the USA to India and beyond.
Why OEMs Are an Effective Advertising Channel
OEM advertising has become a cornerstone of modern marketing, offering several advantages that make it a powerful tool for brands looking to engage users effectively:
- Global Visibility and Reach: Pre-installed apps and prominent placements on a device’s home screen ensures consistent exposure for mainstream and niche apps. For example, a fitness app pre-installed on a phone might gain more visibility than one relying solely on app store search results. OEMs also enable brands to tap into emerging markets and engage users in diverse regions effectively.
- Native Integration for User Experience: OEM placements integrate natively into devices, minimizing friction in the user journey. This helps in enhancing user interaction. For example, Samsung users are more likely to engage with Samsung’s pre-installed app store or widget, increasing the chances of successful user acquisition campaigns.
- Data-Driven Precision and Higher Conversion: Leveraging first-party data from OEMs , such as, device usage, demographics, and behavior, enables brands to deliver personalized campaigns with high relevance, leading to significantly higher conversion rates than traditional channels. For example, a smartphone manufacturer can recommend apps based on a user’s interests, such as shopping or gaming—at a moment when the user is most engaged with their device—directly influencing app installs and user retention.
- Cost-Effective Advertising: With OEMs, advertisers can access cost-efficient opportunities by tapping into large volumes of high-value users who are already engaged with the device. This is important for advertisers looking for scalable and performance-driven campaigns.
Overcoming Challenges in OEM Advertising
Despite its powerful advantages, OEM advertising presents several challenges, including fragmented data, regulatory complexities, and optimizing campaign performance across various device ecosystems. However, platforms like Appnext help brands overcome these obstacles with key features:
- Centralized Campaign Management: Advertisers can now easily manage and monitor their campaigns through streamlined platforms that integrate with major tracking solutions. These platforms allow real-time optimization, ensuring that campaigns are organized and performance can be monitored seamlessly.
- Data-Driven Insights: OEM advertising relies heavily on data for targeting and optimization. The platform leverages advanced analytics that helps marketers gain deeper insights into user behavior, device usage, and other critical data points. This enables more precise targeting, leading to better campaign relevance and effectiveness.
- Compliance Expertise: With stringent global and regional regulations like GDPR and CCPA, OEM advertising must meet specific legal requirements. Such platforms are designed to ensure that campaigns comply with these rules, offering marketers peace of mind while running their campaigns.
By leveraging these features and others, brands can streamline their OEM advertising strategies, minimizing complexities, improving efficiency, and optimizing campaigns to meet specific goals. This approach not only maximizes the effectiveness of their initiatives but also ensures a seamless and impactful connection with the right audiences at the right time.
How to Get Started with OEM Advertising
For brands looking to tap into the power of OEM advertising, here’s a roadmap:
- Identify Target Markets: Focus on regions with high smartphone penetration and strong OEM presence. Countries with rapidly growing mobile markets, like Southeast Asia, Eastern Europe, and Latin America, offer valuable opportunities for OEM-driven user acquisition.
- Partner with an Expert Platform: Collaborating with platforms that specialize in OEM advertising, like Appnext, can help brands access robust OEM ecosystems. These platforms streamline the process, offering everything from targeted ad placements to seamless campaign management.
- Optimize Continuously: Regular monitoring of campaign performance and adjusting strategies based on data will ensure maximum ROI. Leverage insights from on-device behaviors and preferences to fine-tune targeting and ad creatives.
- Start with Pilot Campaigns: Brands can test the waters by running a pilot campaign in emerging markets. This allows them to assess the effectiveness of the channel, experiment with different approaches, and fine-tune campaigns before scaling.
By starting small and iterating based on real-world data, brands can minimize risks and gradually utilize the full potential of OEM advertising.
The Future of OEM Advertising
As mobile ecosystems continue to evolve, OEM advertising is poised to become an indispensable part of digital marketing strategies. With advancements like 5G and the rise of super apps, OEM partnerships will only grow in importance, offering brands even greater opportunities for expansion.
To stay competitive, brands should leverage OEM advertising to tap into high-penetration markets, optimize campaigns, and drive user acquisition. Early adoption will enable brands to capitalize on the expanding mobile ecosystem and secure long-term growth.
By partnering with the right platform, brands can access global networks, insights, and advanced tools to enhance their advertising strategies and achieve impactful results.
Ready to Amplify Your Advertising Strategy? Contact Appnext today to take the first step toward optimizing your advertising strategy and maximizing user acquisition.
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