OEM Advertising: Get New Users With In-Built Smartphone Ads

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OEM Advertising: Reaching New Audiences with Built-In Smartphone Ads

OEM Advertising: Get New Users With In-Built Smartphone Ads

OEM advertising on Android devices is becoming an essential strategy for maintaining a competitive edge in the mobile app market. With increasingly stringent data privacy policies, traditional metrics on user behavior and lifetime value (LTV) are becoming less reliable for shaping marketing strategies. OEM advertising offers a promising solution, integrating ads directly into smartphones to reach users more effectively. As this sector is projected to grow rapidly in the coming years, it’s worth noting that Android currently dominates with a 71.17% share of the global mobile market.

OEM Advertising: Definition, Advantages, and Disadvantages

OEM advertising (Original Equipment Manufacturers) leverage traffic within the native Android device environment. Ads on these platforms appear native and increase conversion rates since they come across as friendly recommendations from the smartphone itself.

Typically, OEM ad creatives are minimalist: home screen icons showing the pre-installed app, static banners with short text up to 25 characters (about the word processing tools here), or suggestions while typing. This approach greatly simplifies the process, as it doesn't require detailed planning or extensive testing.

OEM adverts from smartphone manufacturers
OEM adverts from smartphone manufacturers

To determine whether OEM traffic is right for you, consider your industry, consumer behaviour, and operating system. OEM advertising works well for retail and e-commerce and for brands from well-known manufacturers that need to build a user base. Choosing the right mobile tracker to monitor events and having a solid creative strategy is essential.

To better understand OEM advertising, let's compare it to traditional advertising.

Feature OEM Advertising Traditional Advertising
Visibility Integrated with the device Depends on the chosen platform
Targeting Uses OEM data Based on consumer behaviour data
Trust High Depends on the platform’s authority
User Experience Less intrusive More intrusive

Thus, OEM advertising is a strategic choice for promoting mobile apps because of its broad reach and positive user perception. OEM traffic sources are becoming key platforms in fast-growing regions like Asia, Latin America, and Europe.

Key advantages of OEM Advertising:

  1. Minimal fraud levels. Extensive testing through anti-fraud systems has proven OEM to be a reliable ad placement source. Additionally, these services collaborate closely with phone manufacturers who rigorously monitor software, making traffic manipulation nearly impossible.
  2. Large audience reach. According to Statcounter, Android smartphones hold a significant market share, with leaders like Samsung (23.62%) and Xiaomi (11.73%).
  3. Reduced competition for user attention. OEM advertising is relatively new and less intrusive, minimizing user irritation.
  4. High user trust and no "banner blindness". OEM ads appear as recommendations from the device manufacturer, making users less likely to scroll past them.
  5. Access to new markets. OEM sources enable access to unique audiences that are otherwise difficult to reach through other advertising channels.
  6. Budget control. OEM advertising offers cost-effective pricing models, with performance-based cost-per-install options.
  7. Integration with mobile attribution platforms. Marketers gain full analytics on OEM campaigns and can optimize in real-time.

However, the OEM promotion channel has some drawbacks, including:

  1. Ads are shown only to Android users.
  2. This channel is not suitable for all verticals.
  3. Challenges may arise in creating ad creatives.
  4. Algorithmic traffic purchasing is less effective than Facebook, Google, and TikTok.

Let's explore the available OEM platforms and how to use them.

Manufacturer OEMs

Manufacturer OEMs provide advertisers with wide features and tools for ad placements. Ads are shown to users across various pre-installed apps such as weather, media players, browsers, and more. To advertise on these platforms, you need to upload your mobile app to alternative app stores in advance.

The most well-known manufacturer OEMs include:

  • Petal Ads (Huawei Ads);
  • Mi Ads;
  • Vivo;
  • Oppo;
  • Samsung;
  • Transsion;
  • Realme.

Let’s take a closer look at each OEM traffic source.

Petal Ads (Huawei Ads)

This platform allows mobile app promotion across AppGallery, Huawei Video, Huawei Music, Huawei Books, Huawei Assistant, Petal Search, Huawei Browser, Huawei Themes, and Huawei Ads Kit. The platform reaches 240 million active users monthly. Targeting options include age, gender, location, language, mobile carrier, app status (online/offline), and user interests. Huawei devices are particularly popular in Africa, South America, Asia, and Europe, with less demand in North America.

Advantages of Petal Ads:

  1. Over 730 million active users.
  2. Access to 20+ Huawei apps and thousands of third-party apps.
  3. Diverse ad formats.
  4. Verified user profiles.
  5. Automated bid adjustments.
  6. Seamless one-click installation.

Details on creating effective ad creatives for Petal Ads are shared here.

Mi Ads

Xiaomi Mi Ads has over 410 million active users, supports more than 70 languages, and covers 200+ countries and regions. Xiaomi smartphones are particularly trusted in Europe, South America, and Asia. Various ad formats appear in GetApps, Mi Video, Mi Browser, Mi Music, Mi Themes, AppVault, and other pre-installed apps from the manufacturer.

Advantages of the Mi OEM platform include:

  1. 12 audience targeting parameters.
  2. A broad range of analytics tools.
  3. 9 ad formats.

Vivo

Vivo, a Chinese Android smartphone manufacturer, offers an alternative app store called Vivo Store, with over 200,000 apps available for ad integration. The OEM option reaches 70 million devices, with an average engagement rate of six interactions per day. Vivo smartphones are particularly popular across the Asian region.

Oppo

Oppo reaches over 50 million users across Africa, Asia, and Europe. Advertising on Oppo smartphones is available through the Oppo Store and internal apps, with various payment models, including pay-per-install options.

Samsung

In 2021, Samsung reduced the number of ads in pre-installed smartphone apps, emphasizing a commitment to enhancing user experience. Ads no longer appear in Samsung Weather, Samsung Pay, and Samsung Theme. However, ad campaigns can still be launched in the alternative Galaxy Store and other internal apps not included on the restricted list. Key markets for Samsung include Africa, Asia, Europe, and South America.

Transsion

Popular pre-installed apps on Tecno, Infinix, and itel smartphones include Palm Store, Instant APP, Eagleee, XOS, HiOS, Weather, and Theme, which allow ads in various formats. Additionally, app promotion is possible via the zero screen, cleaner, fold, and app drawer (A-Z). The Zero Screen is the least visited page (27.2 million daily visits) compared to the Cleaner (40 million visits), Fold (120 million visits), and A-Z (160 million visits).

The built-in cleaner app not only frees up device storage but also allows a subtle ad placement centered on the screen. The app drawer, where users go to alphabetically organize their apps, is ideal for banner, full-screen, native, and interstitial ads. Transsion’s top markets include Africa and South Asia.

Realme

The main markets for Realme smartphones are Europe and Africa. Ads on Realme devices appear in the Phone Manager, Theme Store, Browser, and App Market, as well as on the “Security Check” page after a new app download.

OEM Aggregators

OEM aggregators are advertising platforms that collect traffic from mobile device manufacturers. For these platforms, OEM may not be the sole traffic source, but with proper optimization, it can provide a good ROI.

OEM aggregators operate on the following principle:

  1. They collect user data from social media and various websites based on the device ID.
  2. They analyze which mobile apps are installed on the user's smartphone.
  3. They segment the audience by interests, assigning importance levels to ensure precise targeting.

Additionally, these platforms regularly improve their promotion algorithms and anti-fraud mechanisms, which leads to better advertising tools and reduced costs.

OEM Advertising — A New Format That Captures User Attention

OEM advertising stands out due to their innovative format and minimalistic ad creatives. Using this channel for promoting a mobile app saves time, as the advertiser only needs to select the geography and device type, while the algorithms handle the rest. In addition, OEM advertising provides detailed forecasts for CR and CPA that are close to organic levels.

The Acquisition.mobi team collaborates with numerous OEM platforms and runs highly effective mobile app advertising campaigns. If your app needs promotion, feel free to contact us at info@acquisition.com.