In today’s hyper-competitive app space, the battle for user attention is in full swing. With countless apps already vying for loyal users and more popping into existence every day, acquiring users is harder than ever before. Traditional advertising channels like Google and Meta are saturated and expensive, and, with privacy on everyone’s minds, gauging ROAS (return on ad spend) often feels like an insurmountable challenge. However, the question remains: How does a marketer efficiently and scalably acquire new users without inflating their advertising budget?
Amid this chaos, one channel emerges as a vital, untapped opportunity for mobile apps. If the title hasn’t given it away already, I am talking about OEM, or ‘Orignal Equipment Manufacturer’, advertising, of course. Leveraging strategic partnerships with device manufacturers and carriers might just prove to be the fuel that most apps need to get the UA (user acquisition) engine going. OEM ads allow mobile app markets to connect directly with high-intent users at critical moments in the user journey. It also certainly doesn’t hurt that OEM advertising is both cost-efficient and fraud-resistant, but I will get to that later.
Without further ado, let’s dive into the nitty-gritty, the nuts and bolts, and the ins and outs of OEM advertising. From what it is and how it works to expert views and Business of Apps’ top-tier tips, if you can forgive the alliteration, on how to excel at OEM ads, we are covering everything a marketer needs to know to get started with OEM advertising.
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Get StartedWhat is OEM advertising?
As we’ve already seen, OEM stands for ‘Orignal Equipment Manufacturer’. However, that doesn’t tell us all that much, does it now?
In the simplest of terms, OEM refers to on-device advertising, whereby an app is either pre-installed on a phone or the user receives on-device recommendations to install it.
Zooming in on pre-installed apps, think of the Calculator or Weather app, as well as the relevant app store.
On-device recommendations is where the real juice and spice are and what people usually mean when they talk about OEM advertising. As such, OEM ads refer to promotional strategies where apps are marketed directly on mobile devices through strategic partnerships with either device manufacturers or carriers. We’ll get to the major players in the space a little further down the line.
Unlike traditional app advertising, which relies on the app stores and social media platforms, OEM advertising integrates ads directly into the device experience. The app recommendations occur during crucial user interactions and are usually triggered when a user engages with pre-installed apps or after reaching a specific milestone in their user journey, making OEM ads a particularly effective way of reaching high-intent users.
OEM advertising provides marketers with a controlled environment to deliver their campaigns, making the ads feel far less intrusive and more native. OEM also provides direct access to users and is considerably more cost-efficient and fraud-free compared to alternative traffic sources. Formats vary widely, from dynamic preloads and push notifications to in-app ads and lock-screen placements.
How OEM advertising works
The success of OEM advertising lies in its diverse ad formats and placement opportunities, each designed to align with specific user behaviors and needs. Unlike traditional ad platforms that rely on competitive bidding and broad audience targeting, OEM ads leverage exclusive placements and native integrations to engage users at critical moments in their mobile experience.
At its core, OEM advertising functions through direct integrations with device manufacturers and carriers. These companies control both hardware and software ecosystems, including alternative app stores, pre-installed applications, and system-level UI components. This access allows advertisers to engage users through methods such as dynamic preloads, in-app placements, push notifications, and smart folders—all of which provide a seamless, fraud-resistant, and cost-effective approach to app marketing.
Key OEM ad formats
Dynamic preloads
Dynamic preloads place apps onto new devices but only install them when a user opts in during setup. Unlike traditional factory preloads, which are static and less flexible, dynamic preloads allow advertisers to present their apps based on user preferences.
This strategy is particularly effective because:
- Users are most engaged during device setup, making them more likely to install relevant apps.
- App recommendations can be tailored based on demographic insights, regional trends, and device usage.
- Preloads enjoy higher retention rates, with a 50% lower uninstall rate compared to traditional installs.
Alternative app stores
OEMs operate their own app stores, such as the Samsung Galaxy Store, Xiaomi GetApps, and Huawei AppGallery. These marketplaces serve as direct competitors to Google Play and Apple’s App Store but with a less crowded advertising environment.
By running ads within these stores, marketers benefit from:
- Lower CPIs due to reduced competition.
- A 30% lower CPA compared to traditional app store ads.
- Users who are actively seeking new apps, increasing conversion rates.
However, advertising within alternative app stores requires developers to maintain app listings separately, necessitating additional compliance and optimization efforts.
Smart folders and game launchers
Smart folders and game launchers provide persistent visibility by organizing recommended apps based on user behavior. These placements ensure that apps remain discoverable even after the initial device setup.
This approach is beneficial for:
- Targeting engaged users who frequently explore their device’s app ecosystem.
- Improving discoverability for niche apps that may struggle with visibility in mainstream app stores.
- Enhancing engagement through category-based recommendations.
A challenge with smart folders is that they can become cluttered, reducing the effectiveness of individual app placements. However, when executed well, they can yield higher engagement rates due to user intent.
Push notifications
OEM-controlled push notifications are a highly effective channel for both user acquisition and re-engagement. These notifications are delivered directly by the manufacturer, bypassing the need for app installation before engagement.
Key advantages include:
- High visibility: Unlike app-driven notifications, these reach users even if they haven’t installed the app yet.
- Performance-driven pricing: Often based on CPA models, ensuring cost-efficiency.
- Re-engagement potential: Push notifications can retarget users who installed but haven’t converted or those at risk of churn.
While OEM push notifications are powerful, advertisers must avoid overusing them, as excessive notifications may lead to user fatigue and opt-outs.
Lock screen and in-app ads
Lock screen and in-app ads integrate directly into OEM-operated applications, such as news apps, security tools, and music players.
These placements offer:
- Non-intrusive ad experiences, blending seamlessly with the user interface.
- Frequent exposure, improving brand recall.
- Higher engagement rates, as users naturally interact with OEM-developed apps.
Lock screen ads, in particular, ensure maximum exposure, as users engage with them multiple times per day. However, advertisers have limited control over when and where these ads appear, as placement policies vary by OEM.
The benefits of OEM advertising
OEM advertising delivers tangible advantages that are difficult to achieve through traditional channels.
One of its most significant benefits is higher conversion rates. Ads presented within OEM environments are non-intrusive and seamlessly integrated, making them feel like a natural part of the device experience. This organic integration fosters user trust and drives engagement. For instance, apps preloaded dynamically through OEM partnerships have a 50% lower uninstall rate compared to traditional installations.
Another advantage is the ability to engage users at multiple touchpoints throughout their device lifecycle. From lock screen ads that capture attention immediately upon activating a new device to native placements in OEM-operated apps, the opportunities for consistent brand exposure are immense. This multifaceted approach ensures that mobile apps remain visible and relevant without overwhelming users.
Moreover, the advanced targeting capabilities of OEM advertising are unparalleled. App marketers can leverage device-level data, behavioral insights, and ‘appographic’ targeting (analyzing users’ existing apps to predict interests) to refine their campaigns. This precision enables brands to deliver highly relevant ads, increasing the likelihood of downloads and long-term retention.
Best practices for running OEM ads like a pro
To maximize the potential of OEM advertising, app marketers should adhere to a few key strategies.
Test and optimize continuously
Success in OEM advertising often requires iterative testing. Marketers should experiment with different placements, ad formats, and creatives to identify the combinations that yield the best results. Each OEM channel offers unique opportunities, and finding the right mix is essential for sustained growth.
Leverage multiple placements
Combining placements — such as dynamic preloads, push notifications, and alternative app store ads — ensures maximum visibility. For example, using push notifications to re-engage users who installed an app through a preload campaign can significantly boost retention rates.
Plan for high-impact seasons
During peak periods like the holiday season, when CPMs on traditional platforms skyrocket, OEM advertising provides a cost-effective alternative. By focusing on CPA models during these times, app marketers can ensure strong performance without exceeding their budgets.
Focus on advanced targeting
OEM platforms provide access to rich user data, enabling sophisticated targeting strategies. App marketers should use this data to personalize campaigns based on device type, user behavior, and preferences, ensuring their campaigns are relevant and engaging.
Expert views on the future of OEM in 2025 and beyond
Robert Wildner, Co-Founder and CEO at AVOW
“The days of a closed app economy are numbered. For years, Google Play and the App Store have dominated app distribution with high fees and strict policies. But the tide is turning. OEM-operated app stores from Samsung, Huawei, Xiaomi, OPPO, vivo, and more are emerging as real alternatives, giving developers more freedom. With regulations like the Digital Markets Act (DMA) pushing for a more open ecosystem, these platforms are becoming an essential part of the mobile marketing mix.
“These alternative channels offer lower acquisition costs, better native ad placements, and direct access to untapped audiences — something the monopolies have made increasingly difficult. Brands that act now will be best positioned to capture new markets and drive sustainable growth.
“At AVOW, we help brands take control of their app distribution, breaking free from the duopoly and unlocking new, high-value user acquisition channels. The shift is happening — those who embrace it now will gain the upper hand in the future of mobile marketing.”
Luca Mastrorocco, Co-Founder and Head of Growth at REPLUG
“OEM advertising is one of the most underutilized yet highly effective acquisition channels in mobile marketing today. As traditional UA channels become more expensive and competitive, OEM ads are a logical solution for brands looking to reach high-quality users at scale.
“The ability to place an app directly on users’ devices — whether through dynamic preloads, alternative app stores, or -1 screens — creates valuable opportunities to spark steady, measurable growth while keeping acquisition costs under control.
“At REPLUG, we believe OEM advertising is entering a new maturity phase. More advertisers recognize its potential beyond static preloads and are exploring data-driven, performance-focused placements.
“With advancements in transparency, targeting, and measurement, we expect OEM to become a mainstream UA channel in 2025. Brands that embrace it early will definitely gain a competitive edge. As an independent agency with deep expertise in the mobile app marketing industry, we are excited to lead this shift.”
Aviran Edery, SVP and GM, Marketplace at Verve
“AI is poised to redefine the OEM space, fundamentally altering how consumers interact with their devices and, in turn, how advertisers connect with audiences. The integration of advanced AI capabilities into smartphones — like Apple’s dedicated intelligence button or Samsung’s Android equivalent — signals a shift toward predictive, anticipatory technology. These advancements are making devices smarter and more intuitive, moving beyond simple functionality to deliver proactive suggestions, such as recommending a navigation app before commuting hours. This evolution promises to increase time spent on meaningful in-app engagement, ultimately benefiting the ad-supported economy.
“For advertisers, the rise of AI and the ID-less ecosystem presents both challenges and opportunities. While the absence of unique identifiers reduces traditional targeting assurances, Verve bridges this gap by leveraging SDK integrations and AI-powered predictive analytics. By analyzing on-device signals, we deliver highly relevant ads aligned with users’ needs and behaviors — without compromising privacy. This ensures that advertising remains useful and valuable, even as the ecosystem evolves.
“Looking ahead, we expect AI to drive a shift toward more deliberate app usage and a deeper reliance on predictive technologies. OEMs will continue to innovate, reshaping the device landscape, and brands will need to align with these changes. Verve is leaning into this future by building solutions that balance privacy with relevance, ensuring advertisers can thrive in the next wave of mobile innovation.”
