Today, app launch campaign costs range somewhere between $5,000 and $100,000. The mobile app landscape is a battlefield, and for commerce apps, the war for visibility has never been more intense. The traditional playbook—A/B testing ad creatives, optimizing for a lower cost-per-install (CPI) on social media, and battling for keywords on the app stores—is no longer a complete strategy.
It’s a game of diminishing returns, where every new user costs more than the last, and the noise of the market makes it more challenging than ever to stand out. The constant struggle for mobile app advertising is real, forcing marketers to look for a new edge.
But what if there was an entirely different frontier?
A channel that bypasses the saturated app stores, sidesteps common ad fraud, and reaches users at a moment when they are at their most receptive? It is the promise of Original Equipment Manufacturer (OEM) advertising, and for the savvy growth marketer or product manager, it’s a non-negotiable part of the future of user acquisition. It is your definitive guide to understanding, leveraging, and mastering this powerful, yet often overlooked, channel.
By partnering with an expert mobile OEM advertising provider, you can reach 1.5 billion people. OEM advertising is, at its core, a partnership between an app developer and the company that manufactures the mobile device. Think of companies like Samsung, Xiaomi, Huawei, OPPO, and vivo. These manufacturers control the device from the factory floor to the moment it lands in the user’s hands, and they have the unique ability to integrate your app directly into the user experience.
Now this goes far beyond a simple banner ad. OEM advertising leverages the native touchpoints of the device itself. Here’s a breakdown of the key ad placements and why they matter:
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- Preloads and factory installations: This is the ultimate placement. Your app comes pre-installed on the mobile device, ready to be discovered and used the moment the user turns on their new phone. It’s a “zero-friction” install, as the user doesn’t have to navigate to an app store, search for your app, or wait for a download. For commerce apps, this is a powerful statement of presence.
- Smart folders & app recommendations: Many mobile OEMs create curated folders on the home screen, such as “Social,” “Entertainment,” or, crucially, “Shopping.” Your app can be featured prominently within these folders, making it a trusted, recommended discovery rather than an intrusive ad. This native integration gives your app a significant credibility boost.
- First-boot experiences & on-device wizards: During the initial setup of a new device, a user often goes through a guided process to configure their phone. OEMs can integrate app suggestions directly into this flow. It is a decisive, high-intent moment where the user is actively building their digital ecosystem, and a relevant recommendation for a commerce app can be incredibly effective.
These placements are so valuable because they are not just advertisements; they are native integrations. They feel less like a promotion and more like a helpful feature, earning a level of trust that a third-party ad can never achieve.
Capturing the “zero moment”: Reaching users at the perfect time
For a gaming client, Funvent Studios, AVOW helped acquire over 1 million installs in a month. The psychological advantage of OEM advertising is profound. Consider the typical app user acquisition funnel: A user is scrolling through their social media feed, looking for updates from friends or news, when they are interrupted by an ad for a commerce app. Their mindset is one of passive consumption, and the ad is often seen as a distraction.
Now, contrast this with the user who has just unboxed a brand new phone. It is a high-intent, high-emotion moment. They are actively exploring their new device, customizing their home screen, and making deliberate choices about which apps to integrate into their daily routine.
This element is what we call the “Zero Moment” of truth in mobile.
By reaching a user in this state, your app isn’t an interruption—it’s a discovery. They are actively seeking to populate their device with apps that provide value, and because the promotion comes from the mobile OEM, it carries an implied stamp of approval. This psychological leverage translates directly into higher user engagement and long-term user retention, as the user feels a sense of ownership over their app choices from the very beginning. It is a core part of effective mobile app advertising.
The definitive advantages of OEM for commerce apps
OEM advertising offers a trio of distinct advantages that can fundamentally change the trajectory of a commerce app’s growth.
High-quality, fraud-free traffic
A Juniper Research report indicates that in 2023, 22% of digital advertising spending, or a whopping $84 billion, was lost in fraud. The biggest headache for most user acquisition teams is ad fraud. Click farms, bot traffic, and SDK spoofing can burn through budgets and corrupt data, leading to skewed metrics and wasted spend. OEM advertising almost entirely eliminates these risks.
The reason is simple: there are no intermediaries. The traffic comes directly from the device manufacturer to the user’s phone. There is no open ad exchange, no complex bidding system, and no opportunity for bad actors to inject fake clicks or installs. Every install is a genuine user on a real mobile device, which leads to a superior install-to-purchase conversion rate and a higher lifetime value (LTV) for each user acquired. What this means is that your marketing budget is working harder and smarter, with an assurance of quality that is simply unavailable in other channels.
Access to untapped audiences
By 2025, Android will boast 3.3 billion users and command a 71% global market share. It gained its first billion users just a year after launch and remains strong in countries like India, Brazil, and Indonesia, where it exceeds 85% market share.
In a world where everyone is bidding on the exact keywords and audience segments, finding a new audience is the holy grail. Mobile OEMs provide a direct gateway to vast, untapped user bases, particularly in high-growth, emerging markets like India, Southeast Asia, and Africa, where traditional mobile app advertising may be less mature or prohibitively expensive.
Furthermore, OEMs have rich first-party data about their users that goes beyond what a typical ad network can provide. They know the user’s device model, price point, and even regional preferences, allowing for a level of audience segmentation that is incredibly granular.
A commerce app focused on luxury goods can partner with an OEM to target only their premium, high-end device models, while a flash-sale app can target budget-conscious users on entry-level devices. This precision targeting ensures your app is placed in front of the most relevant potential customers.
Superior ROI & lower CPI
At first glance, the cost of an OEM partnership might seem high. It’s often a flat fee or a per-install cost, but this is where the long-term view is critical. When you factor in the unprecedented quality of the traffic and the exceptional lifetime value of these users, the true cost-per-install (CPI) is often far lower than on other channels.
Why? A single OEM user is more likely to make a purchase, be retained, and be less likely to be fraudulent. The initial investment pays dividends over time in the form of higher in-app revenue and a better return on ad spend (ROAS). You’re not just acquiring an install; you’re acquiring a valuable, high-intent customer who is ready to engage with your product.
In a case study with a “Buy Now, Pay Later” fintech app named Kredivo, the campaign achieved a 46% install-to-loan application rate, proving that OEM ads drive high-intent users who take valuable, in-app actions.
From theory to practice: A strategic guide for app marketers
Now that you understand the “why,” it’s time to tackle the “how.” Here is a practical, step-by-step guide for a commerce app marketer looking to enter the world of third party app store or mobile OEM advertising.
- Researching OEM partners: This is not a self-service channel. You must build a relationship with an OEM or, more commonly, a specialized partner agency that has pre-existing relationships with multiple OEMs. Look for partners with a proven track record, transparent reporting, and strong connections in your target markets. Ask for case studies, especially those involving commerce or transactional apps.
- Defining campaign goals: Don’t go into an OEM campaign with the same metrics as a social media campaign. Your goals should be focused on quality over quantity. Instead of just aiming for a low CPI, focus on post-install events like “First Purchase” or “Add to Cart.” Set realistic expectations for user retention and LTV. The success of an OEM campaign is measured in months, not days.
- Measurement and attribution: This is arguably the most complex part. Since the install happens before a traditional ad click, you can’t use standard attribution models. You’ll need to work with your Mobile Measurement Partner (MMP) to set up specific tracking for OEM campaigns. This usually involves a “pre-install” or “preload” solution, where the MMP attributes the install based on a pre-defined list of device IDs provided by the OEM. Accurate measurement is key to proving ROI, so ensure this is set up correctly from day one.
- Optimizing and scaling: Once the campaign is live, don’t just watch the installs. Closely monitor post-install event data. Is a particular OEM partner or mobile OEM delivering higher LTV users? Are users from smart folders converting better than those from first-boot experiences? Use this data to optimize and allocate more budget to the most effective placements and partners.
For a “super app” named Kumu in the Philippines, OEM advertising through AVOW led to a 60%+ increase in app engagement, demonstrating the quality of users acquired through the channel. OEM advertising is no longer a niche strategy for the few. It is a maturing channel that is fundamentally reshaping the mobile marketing ecosystem.
Conclusion
For commerce apps, it offers a path to bypass a crowded market, acquire high-quality, fraud-free users, and build a sustainable growth engine. It’s a move beyond the app store and into the device itself, a decisive shift that puts your app in a trusted position from the very beginning.
Don’t let your competitors get there first. Rethink your acquisition strategy and explore this new frontier.
Need help with mobile OEM advertising? Contact us to clarify your doubts and get started!
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