India’s e-commerce sector is in the middle of a massive transformation. With millions of new shoppers coming online each year, the market is all set to become one of the world’s largest. For mobile app developers and marketers, this surge represents both an opportunity and a challenge: how do you stand out in an increasingly crowded space while keeping acquisition costs under control? It is where e-commerce advertising through Mobile OEM (Original Equipment Manufacturer) channels comes into play.
Unlike traditional digital ads that compete for attention on social platforms or search engines, OEM ads live natively within the device ecosystem—whether through recommendation of apps at the time of device setup, app stores, or smart folders. For Indian shoppers, who are predominantly mobile-first, this creates a seamless entry point into your e-commerce app.
Why India Is the Market to Watch
India’s digital shoppers are unique in both scale and behavior. Over 60% of internet users in India shop via mobile apps, with a significant portion of this growth originating from tier-2 and tier-3 cities. These emerging regions are driving the next big wave of e-commerce expansion, fueled by affordable smartphones and cheaper data plans.
But while the market is growing, the competition is intense. Established giants and rising challengers are pouring ad spend into digital platforms, inflating customer acquisition costs. At the same time, consumers are extremely deal- and discount-driven, making it harder to retain them without constantly sacrificing margins. Traditional e-commerce advertising methods are no longer enough on their own.
The OEM Advertising Advantage
Mobile OEM advertising provides an alternative—and highly effective—path to discovery. By integrating ads directly into the mobile device ecosystem, brands can reach users in a trusted, fraud-resistant environment.
Here’s why it’s particularly powerful in India:
- Reaching first-time online shoppers: Many users in smaller cities and towns are downloading their very first shopping apps. OEM placements allow you to connect with them at the exact moment of need, often before they even think to search in an app store.
- Bypassing digital clutter: In a market where Facebook, Google, and other platforms are saturated with ads, OEM placements stand out. They aren’t competing in a noisy feed—they’re part of the device experience.
- Targeted regional reach: OEMs can segment by device models, geography, and usage patterns. For Indian e-commerce brands, this means you can align campaigns with consumer groups who are most likely to convert.
Early Indicators of Success
Globally, e-commerce advertising is booming, with mobile ad spending expected to continue rising at double-digit rates. In India, the opportunity is even more pronounced, given that over 80% of e-commerce transactions already happen on mobile devices.
Mobile OEM channels are showing higher engagement and conversion rates compared to many traditional digital campaigns. For brands struggling with inflated CAC from mainstream platforms, OEM ads provide incremental reach and more substantial ROI.
How App Developers and Marketers Can Leverage OEM Advertising
If you’re building or scaling an e-commerce app in India, OEM channels should be at the center of your growth strategy. Here are a few starting points:
- Dynamic preloads: Partner with OEMs to have your app suggested at the time of device setup, ensuring your app is visible to new users from day one.
- App store promotions: OEM-operated stores can highlight your app to users already searching for shopping solutions.
- Smart folders and recommendations: Surface your app when users are looking for similar services, boosting organic installs.
The key is to go beyond pure installs. Track post-install behavior, including retention, repeat purchases, and lifetime value. OEM ads don’t just drive installs—they build loyal, high-quality user bases.
Conclusion
India’s e-commerce market is on track to become a global powerhouse, and e-commerce advertising will evolve along with it. As competition intensifies, OEM channels will become even more critical for brands that want to grow sustainably without over-relying on the usual platforms.
The next wave of digital shoppers in India will decide which e-commerce apps become household names. By tapping into Mobile OEM advertising today, app developers and marketers can capture this wave early and position themselves ahead of the curve.
👉 Want to dive deeper into regional insights, strategies, and practical examples? Download the AVOW Mobile OEM Advertising Playbook for E-Commerce Apps to unlock the full India spotlight and discover how to make OEM advertising work for your growth.
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