As mobile marketing matures, OEM advertising is evolving from a growth hack into a strategic performance pillar. The data is clear: on-device channels deliver better cost efficiency, user quality, and retention. Now, the question is not if marketers should invest in OEM advertising, but how to structure it for maximum impact.
Key Benefits for User Acquisition
- Early and High-Intent Reach:
OEM ads engage users right after device activation the moment when they are most likely to download and explore new apps. This timing drives 3× higher install rates than standard banners and improves top-of-funnel conversion efficiency. - Cost Efficiency:
By bypassing crowded auctions, OEM campaigns achieve ~30% lower CPI on average, while quality users translate to 40% higher ROAS. - Fraud-Free and Brand-Safe:
OEMs control their ad environments, providing clean installs verified at the hardware level. There’s virtually no fake traffic, a growing concern in open programmatic networks. - Native Experience and User Trust:
Because the app suggestion appears as part of the device interface, users see it as a system recommendation, not an intrusive ad. This enhances perceived legitimacy and improves both install rate and retention. - Granular Targeting:
OEMs enable targeting by device model, geography, and behavior, helping brands reach specific audience tiers – from high-end flagship users to emerging-market segments – with precision. - Measurement Integration:
Leading MMPs like AppsFlyer, Adjust, and Singular natively support OEM attribution, enabling consistent performance tracking across channels.
These combined benefits make OEM advertising one of the few channels capable of delivering both scale and quality, the two pillars of sustainable mobile growth.
Challenges and How Brands Overcome Them
Despite its growth, OEM advertising presents operational nuances:
- Platform Fragmentation:
Each OEM has its own ad network and interface. Successful brands either build internal expertise or partner with specialized OEM agencies (such as BlueFocus, Nativex, or Tec-Do) that aggregate inventory across multiple manufacturers. - Android-Only Ecosystem:
OEM channels are exclusive to Android devices, which represent 70%+ of the market but exclude iOS. For most brands, this is still a significant opportunity; however, iOS growth strategies must run separately. - Technical Setup:
Brands must ensure proper SDK integration for preload attribution and test with their MMP before scaling. Fortunately, tracking standards have improved dramatically since 2023.
As the OEM ecosystem matures, these challenges are diminishing. Industry standardization and deeper MMP integrations have made multi-OEM campaigns easier to manage than ever before.
Strategic Outlook: The Next Phase of Growth
OEM advertising is poised to become a cornerstone of global app distribution by 2026. Analysts from data.ai and AppsFlyer forecast that the share of app installs driven by OEM channels will continue to rise, reaching 30% globally within two years.
The next evolution of OEM media will center on:
- AI-Driven Targeting: OEMs will leverage device-side intelligence to recommend apps contextually, without compromising privacy.
- Cross-Device Expansion: As brands like Samsung and Xiaomi integrate smartphones, tablets, and smart TVs, OEM ad ecosystems will become multi-screen.
- Performance-Based Models: Expect more campaigns to shift from CPI to CPA (cost-per-action) bidding, rewarding true post-install engagement.
For marketers, the implications are profound. OEM advertising offers a chance to diversify acquisition, reduce overreliance on the “Big Two,” and reach billions of Android users with efficiency and transparency.
In a market where traditional channels are saturated and privacy walls are rising, on-device advertising isn’t just another channel, it’s the next frontier of app growth.
OEM advertising has evolved from a regional tactic into a global, data-driven user acquisition powerhouse. By blending native device integration, high-intent engagement, and fraud-free delivery, it gives brands an edge in acquiring quality users at scale.
For mobile-first companies, 2025 marks the moment to fully integrate on-device OEM channels into the UA mix, not as an experiment, but as a strategic foundation for sustainable growth.
