By Ashwin Shekhar
As a mobile-first economy, India like many of its global counterparts is evolving at a fast pace. The beginning of 2024 saw a total of 1.12 billion active cellular mobile connections, corresponding to 78.0 percent of the country’s population (Source- DataReportal). With smartphones having become a window for consumers to explore and engage with varied elements in their outside world- be they entertainment, fitness, food delivery, gaming, stock trading, and more; brands rightfully so, are scouting for the most fruitful ways of engaging with their target consumers. For marketers, mobile apps have stood out as a pivotal medium to deliver enhanced customer service, boost brand awareness and gain market visibility.
Parallel to this, a shift is taking place. Breaking the clutter of conventional advertising platforms, mobile Original Equipment Manufacturers (OEMs) such as Xiaomi, Huawei, OPPO, Vivo and Transsion amongst others, with their alternative app stores have shown their prowess by presenting exciting and efficient business channels for marketers to increase app downloads and user engagement; thereby carving out a niche for themselves. With the wealth of options mobile OEMs provide, advertisers are steadily employing various strategies to maximize their reach and effectiveness.
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Is mobile OEM advertising a transitory trend, or is it a solid bedrock for driving a successful mobile growth strategy in the current competitive time? Let’s find out…
The world of mobile OEMs
Beyond creating mobile smartphones and hardware, a plethora of OEMs have also embarked upon a journey in the software market by launching their own app stores and advertising platforms. As an alternative to the already existing mainstream avenues such as Google Play and the iOS App Store, these alternative app stores have transformed the ecosystem within a relatively shorter span of time. Take, for example, their revenue stats, which by the end of 2022 stood at a whopping $39 billion. With a user base that is growing exponentially and a burgeoning user base and enhanced engagement, mobile OEM advertising is here to stay as a notable avenue to incorporate into the larger marketing mix.
As a digital marketer are you still wondering why you should care about leveraging the power of mobile OEM advertising? The app store ecosystem, however fragmented it may be, is, in reality, full of opportunities.
- Global reach lends an unprecedented edge: Mobile OEMs are enabling brands to enter diverse markets globally. In India and other countries in Asia, local mobile OEM app stores are steadily strengthening their market standing, providing a vital gateway for brands to expand regionally. Mobile OEMs including Xiaomi, Vivo, Oppo, Realme, OnePlus, Infinix and Tecno account for over 62% of the India market share. Many mobile OEMs have also launched their alternate app stores in EMEA and LATAM, as part of their ongoing global expansion. What’s worth noting is that the global reach of mobile OEMs goes beyond their individual alternative app stores. Brands can leverage these players’ on-device ad inventory which allows them to advertise within the launcher, app drawer, native apps, and beyond.
- Better pricing keeps budget in Check: Fierce bidding tussles have shot up advertising costs on traditional platforms. Marketers can now reach their acquisition targets through mobile OEMs flexible performance based CPI (Cost Per Install) pricing model, whereas third party ad networks such as Google and Facebook have rigid pricing structures which cannibalize app developers from leveraging ad inventories to grow and scale further.
- Fraud-Free user acquisition: Mobile OEMs directly distribute applications to their customers via their own dedicated stores, making them a trustworthy channel for advertisers to spend their budget.
- Extensive Targeting: Appographic targeting empowers brands to assess which apps users are interested in—beyond categories—and which ones they’re familiar with; insights that are crucial prior to any festive or peak consumer spending seasons. Marketers can then craft hyper-personalized campaigns to the alternative app stores or Google Play Store, amplifying engagement and conversion rates. They get the flexibility to select the download destination for display campaigns. Amidst privacy regulations, the introduction of the Open Anonymous Device Identifier (OAID) allows marketers to sustain their targeted plans whilst ensuring user privacy.
- The power of Dynamic Preloads: Dynamic Preload campaigns lend brands an edge by being one of the first apps on a new device. They get a chance to eventually convert those users into loyal customers. This advantage is unparalleled. Dynamic preloads via Google Play Auto Install (PAI) are sourced directly from the Google Play Store, thereby simplifying the process as your existing app on the Play Store can be leveraged together with this mobile OEM offering. This also provides the further benefit of allowing your app’s download numbers, and as a consequence their Play Store rankings, to organically improve.
- Integration with MMPs: Mobile OEMs’ integration with leading attribution platforms lends data-backed analytical prowess which in turn allows marketers to be in greater control. Campaigns can be evolved in real-time and optimized for maximum efficacy.
- Monetization and Freedom of Choice: Contrary to the natural skepticism stemming from being accustomed to the monetization strategies of conventional platforms, app developers soon realize that the transition to alternative app stores is in fact seamless. They have the freedom to choose their own payment solutions and decide how they would like to monetize. App developers don’t have to maintain app versions across multiple app stores, as OEMs now offer a built-in auto-update functionality, maintaining their app version in line with what has been uploaded to Google Play.
Each global market sees a stronger presence by a particular Mobile OEM. In Spain for example, Xiaomi is at the top with over 27% market share while Oppo shares that spot in Indonesia with over 17% market share. In India, Vivo rose to the leading spot with over 15% market share. Mobile marketers should do in-depth research and acquire industry knowledge to accordingly understand what works, and where.
As such, partnering with new age dynamic app growth companies specializing in Mobile OEM advertising can be a game changer.
Alternative App Stores are the Mainstream and here to stay.
With their presence in the mobile marketing landscape evolving (reaping in half of all android app store expenditure), the advantages of alternative app stores are noteworthy, crystal clear and certainly a part of the mainstream.
The power that brands get to be able to stand out and to connect with new users through personalized, targeted messaging also resonates with end-users. Marketers must track how this space evolves and accordingly adapt, innovate, and thrive. We are at the cusp of merging the old traditional models with the new age alternative app stores and it’s time that marketers make mobile OEMs a part of their mobile growth strategy.
The author is co-founder and CRO, AVOW
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