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The mobile app marketing industry is witnessing massive growth across Asia, LATAM, and CIS regions while slowly penetrating its presence in the European market. As a result, app publishers & mobile advertisers are constantly hunting for new mobile growth channels to accomplish their app user acquisition goals. An exciting channel that has recently taken the world by storm is OEM (Original Equipment Manufacturer) advertising. This practice refers to the manufacturer’s pre-installation of an app on a device, allowing the app to reach a broad audience base.
Why choose OEM advertising
There are over 2.7 million apps on the Google Play store. Since the state of mobile & app marketing is becoming increasingly competitive, it is getting increasingly challenging to stand out. Thus, many developers are turning to OEM advertising as a new growth channel to reach potential users.
OEM advertising is therefore set to be one of the most critical components of the marketing mix for app developers, mobile marketers, and advertisers in 2023 & beyond. This blog post will help you explore why OEM advertising is a must-have for your marketing mix in 2023.
Access to a Wider Audience
OEM advertising enables app developers & marketers alike to reach a wider audience. OEMs have agreements with mobile carriers and device manufacturers, implying their apps can be pre-installed on devices sold to customers. This pre-installation is advantageous in reaching a broader audience, thus offering a competitive advantage in today’s highly competitive app market.
Higher App Install Rates
Studies reveal that pre-installed apps have a higher install rate than those not pre-installed. A report by AppsFlyer confirms that pre-installed apps have an average install rate of 38%, while non-pre-installed apps have an average install rate of only 2%. This translates to the fact that if your app is pre-installed, it is more likely to be installed by users, leading to higher acquisition rates & revenue.
Better User Engagement
Since pre-installed apps are already available on the devices, they are more likely to be used by users. As a result, it leads to longer session durations, thereby increasing engagement & improving retention.
Reduced User Acquisition Costs
User acquisition costs come to be one of the most significant expenses, especially for app developers & marketers. OEM advertising can, however, help lower these costs. Since the cost per install (CPI) for OEM advertising is generally lower than other forms of advertising, it can result in lowered marketing and user acquisition costs, thus leading to a higher ROI.
Enhanced Brand Awareness
Pre-installed apps are more likely to be used by users who are already familiar with & trust the manufacturer’s brand. Thus, it can be an effective way for app developers and marketers to enhance brand recognition & strengthen brand recall. This can be especially valuable for new apps or apps trying to penetrate a new market.
Staying Ahead of The Competition with OEM advertising
With a plethora of different forms available in OEM advertising, it is imperative for app developers and mobile marketers first to understand the various forms of OEM advertising available, such as home screen ads, lock screen ads, and in-app ads. Each form of advertising comes with its own benefits & challenges. Once you, as an app developer/marketer, are clear with each, choosing the form of advertising that best suits their needs and goals is a great idea.
Next, analyzing data on user behavior and usage patterns is a big win-win for creating targeted campaigns that will most likely resonate with users. With sufficient data to inform advertising decisions, app developers and mobile marketers can build more effective campaigns that are more likely to generate higher engagement & conversion.
In conclusion, OEM advertising is essential for your marketing mix in 2023 & beyond. It enables access to a broader audience, enhances brand awareness, offers higher app install rates, and enables better user engagement while providing lower acquisition costs. Thus, to remain competitive in this ever-evolving app market, incorporating OEM advertising into your marketing mix is key to a successful marketing strategy.
If you’d like to know more about how OEM advertising can benefit your app marketing stack, reach out to Iconpeak’s seasoned mobile marketing experts today!