The mobile app market is fiercely competitive, with new and established players constantly vying for user attention. How many users, exactly? According to the Adjust shopping app insights report, 2.6 billion users used shopping apps and made at least one purchase last year. That is almost the population of India and China combined! Thus, for shopping apps looking to stay ahead and garner the attention of 2.6 billion potential customers, it’s crucial to adopt advertising strategies that align with your app’s unique needs and goals.
Disruptors like Temu have shown that innovative approaches can catapult an app to success in a relatively short time. Through a multi-channel marketing blitz costing well over US$5 billion, Temu went from a relative nobody in September 2022 with just over 400 thousand downloads after their initial launch push to over 30 million downloads by May 2023. But you don’t need to spend like a billionaire just so your users can shop like one.
Temu’s rise, while inspiring, hides the darker side of such meteoric rises. One often overlooked aspect of Temu’s marketing and spending blitz is how they also disrupted the advertising industry during that period. Due to the nature of how ad networks and exchanges work, Temu’s use of ad networks like Meta (Facebook) and Google caused ad costs to rise for the entire industry as Temu was outbidding just about everyone for ad space and placements, propelling them to one of the top global advertisers.
For smaller advertisers with lower budgets, competing in this arena is nigh on impossible. But things do not have to look so bleak. For advertisers looking to carve their own space and audience away from the competition, look no further than mobile OEM advertising. With greater clarity on pricing and placements due to their private marketplace (PMP) and price fencing, advertisers can be assured that not only are they getting premium ad placements at much better prices, but it ensures that any sort of disruptive spending from the competition will not have an impact on your prices and placements. But as with all things in life, a key question must always be asked. Which one is right for you?
Whether you’re an emerging brand or an established player, finding the right mix of advertising tactics is key to standing out in this crowded market. Take this quiz to discover which advertising strategy best suits your app’s goals and growth aspirations!
It’s Quiz Time!
1. How competitive is your app’s niche?
- A) Not very competitive; any visibility helps
- B) Highly competitive: I need a distinct advantage in visibility to stand out in a crowded market
- C) Highly competitive: I will continue with mainstream channels as they have worked fine so far
2. What is your app’s advertising budget?
- A) Limited: I need cost-effective solutions with broad reach
- B) Moderate to high; I’m willing to invest in strategies that offer targeted reach and higher engagement
- C) Very high: I’m willing to spend money on multiple campaigns through the usual channels
3. How specific is your target audience?
- A) Broad: I aim to reach a wide and diverse audience
- B) Specific: I’m targeting a niche or highly specific demographic
- C) I don’t really have a target audience in mind
4. What stage of growth is your app currently in?
- A) Early stages; I need to build initial visibility and user base
- B) Scaling phase: I’m focused on accelerating user acquisition and engagement
- C) Maintenance: I am happy with where my app is and don’t plan on much growth
5. What is your preference for advertising platforms?
- A) I do not know what options are out there and would like to learn more
- B) I’m open to exploring alternative platforms like mobile OEMs and alternative app stores for better targeting
- C) I prefer established platforms like mainstream app stores
6. What is your primary user acquisition goal?
- A) Increase overall installs and visibility, with a focus on down-funnel events
- B) Target specific users who are more likely to engage and convert
- C) Increase installs or impressions
7. How flexible are you with trying new advertising channels?
- A) I would like to use proven methods
- B) I’m willing to explore new and emerging channels for better results
- C) I prefer sticking to what I know
The Results are in…..
If you answered mostly C:
Traditional advertising methods, such as mainstream app stores and popular digital platforms, may suit your needs. These platforms provide broad reach and are established, making them good for brands looking to build initial visibility but are saturated to the point that gaining any sort of traction beyond that initial visibility will require a lot of money and some luck. For context, Amazon, the largest e-commerce platform in the world, spent almost US$45 billion for advertising in 2023 alone, up from just US$1 billion in 2010. Of that US$45 billion, more than half went to digital and mobile advertising. Against that level of competition, other shopping apps would find it difficult to even stay in the conversation, much less compete. Thus, a traditional approach is practical if you’re focused on saving time and effort by publishing your app on a single app store and using the same advertising methods as everyone else, but at a relatively higher cost and lower ROAS.
If you answered mostly A or B:
Advertising through mobile OEMs and their owned app stores, such as Xiaomi, Samsung, Huawei, Oppo, Vivo, and Transsion, among others, might be the perfect solution for you. This approach offers numerous advantages, including highly targeted advertising, access to untapped audiences, and the ability to leverage advanced targeting options like appographic and demographic targeting. Cost efficiency, combined with the reach of mobile OEMs and AVOW’s focus and expertise with down-funnel events, such as creating an account or making a first purchase, makes mobile OEMs with AVOW perfect for shopping apps looking to acquire not just users but quality users. This strategy is ideal for apps in highly competitive niches or those looking to scale rapidly with a more engaged user base at a relatively lower cost and a higher ROAS.
Thrive, Not Just Survive
Whether you’re seeking to build initial visibility or accelerate growth, choosing the right advertising strategy is crucial. If you’re ready to explore innovative and effective advertising solutions through mobile OEMs, AVOW is here to help. With access to over 1.5 billion daily active users and consistently providing over 10 million monthly downloads for our clients, our expertise in mobile OEM advertising and alternative app stores can give your shopping app the competitive edge it needs to not just survive but thrive.
Contact us today to unlock new growth opportunities!