User acquisition’s next level: How mobile OEM advertising is changing the game

• Traditional ad platforms are becoming saturated.
• OEM brands offers new, more targeted ways to reach users.
• Xiaomi, Samsung, OPPO, vivo, Huawei, etc. offer more precise targeting.
• Download the AVOW Playbook to learn more.

Robert Wildner, the CEO and co-founder of AVOW explains why handset manufacturers might offer game developers a new, more effective opportunity to reach users.

Throughout my career in mobile advertising, I’ve witnessed firsthand the increasing complexity and challenges faced in effective user acquisition (UA). Today’s mobile gaming industry demands deeper strategies, precise targeting, and sophisticated analytics to deliver meaningful results.

In 2024 alone, the mobile gaming industry saw 49.3 billion downloads, generated $81.7 billion in in-app purchase (IAP) revenue, and recorded over 5 trillion ad impressions. Despite these impressive figures, rising costs-per-install (CPIs) (a global average of $1.93, with North American peaks at around $5.11) and intensified competition have made retaining users and maintaining return on investment (ROI) increasingly challenging.

Why OEM Advertising is the Next Logical Step

As traditional advertising platforms like Meta and Google become increasingly saturated, mobile original equipment manufacturer (OEM) advertising emerges as an essential alternative. OEM placements offer unique, device-level access to billions of Android users through OEM brands such as Xiaomi, Samsung, OPPO, vivo and Huawei, among others, significantly enhancing targeting precision.

OEM channels allow marketers to reach users at crucial points, such as during device activation, system-level app discovery, and through native notifications. This precise targeting ensures contextually relevant and engaging user experiences that align directly with user intent, resulting in significantly improved conversion and retention rates.

Optimising creatives with advanced insights

In today's UA campaigns, creatives must prioritise high-quality engagement driven by data. Playable ads, short-form videos, and user-generated content (UGC) tailored to specific regional behaviours dramatically outperform traditional banners and static interstitial ads. OEM systems encompass a diverse range of ad formats and placements, all designed to engage and capture users' attention throughout the user journey on their device, which helps advertisers achieve lower customer acquisition costs and significantly higher user retention rates.

According to reports, playable ads currently lead engagement in mature markets, while UGC effectively drives credibility and engagement within casual and simulation genres. Regular creative refreshes, now a standard practice for 60% of advertisers in emerging markets, also help combat creative fatigue and maintain high engagement.

Navigating privacy with improved attribution

Recent privacy initiatives, including Apple's ATT and Google's Privacy Sandbox, have made traditional tracking and precise ROI attribution difficult. Mobile OEM advertising addresses these challenges effectively by offering direct, device-level attribution, providing detailed yet privacy-compliant insights.

OEM proprietary systems offer aggregated yet actionable event-level data. These detailed reports help marketers optimise campaigns efficiently, reduce unnecessary spending, and achieve more accurate ROI tracking compared to traditional probabilistic models.

Balancing advertising, monetisation, and user experience

In mobile marketing, effective advertising strategies in gaming rely on formats that enhance, rather than disrupt, the user experience. Rewarded videos, native placements, and Dynamic Preloads, integrated directly within OEM channels, foster seamless user interactions, maintaining engagement while optimising ROI.

For developers, data indicate that hybrid monetisation models, combining ads and IAPs, now dominate, with rewarded videos notably driving high engagement, particularly in North America, where a 65% adoption rate is observed. Understanding these nuances will be key in building a sustainable global growth engine for your game.

Furthermore, OEM ad placements can improve ROI as ads are embedded naturally within user journeys, guided by predictive analytics to optimise placement and timing for maximum impact with minimal disruption.

Enhancing Retention through Early Engagement

Retention begins well before installation. Device-level analytics provided by OEM channels help predict and enhance user lifetime value (LTV). Capturing users through organic discovery methods, such as curated app recommendations and Dynamic Preloads, significantly increases early engagement and long-term retention.

Diversification is key to future UA success

Going forward, effective UA strategies will depend significantly on diversified approaches. Reliance solely on traditional platforms restricts targeting precision, campaign optimisation, and overall monetisation effectiveness. Mobile OEM advertising offers granular insights, empowering marketers to execute more tailored and successful campaigns.

At AVOW, we’ve compiled our expertise into "Ready Player Win: The Mobile OEM Advertising Playbook for Gaming Apps," an in-depth guide featuring actionable strategies, regional benchmarks, and practical recommendations based on real-world results.

As we enter a new era of mobile marketing, Mobile OEM advertising is no longer optional but rather an essential pillar in sophisticated, data-driven UA strategies.

Download our playbook today to unlock innovative opportunities, redefine your UA strategy, and stay ahead of the curve. Most importantly, get yourself primed for winning the mobile ad game.