India, 21 August 2023: Latest figures show that mobile Original Equipment Manufacturers (OEMs) and their alternative app stores have firmly entered the mainstream: companies including Xiaomi, Vivo and OPPO made up over 50% of global handset shipments in 2022, and new regulations across APAC are set to further diversify the mobile ecosystem in the coming years. This includes a new ruling by India’s Competition Commission against Google, ordering the company to open the Android ecosystem to competition, and a similar law passed in South Korea against both Apple and Google.
Google and Apple’s grip on the mobile ecosystem has affected how developers distribute their apps for the last decade. This includes taking a 30% cut of all in-app purchases made within their app stores, dramatically affecting developers’ bottom line. Most recently, Apple’s App Tracking Transparency framework means that apps can no longer ensure the accuracy of their targeting or see the true impact of what they are spending, with Google planning to roll out something similar Mobile OEMs offer a practical alternative to Apple and Google’s dominance monopoly through their own dedicated app stores, called alternative app stores, where they can directly distribute applications to their customers, whilst ensuring attribution works correctly.
Mobile OEMs allow developers to bypass these issues, and offer many other benefits:
- Mobile OEMs offer a viable alternative to Apple and Google’s strict 30% cut of in-app purchases. Companies including Xiaomi, Vivo, and OPPO don’t require developers to pay any fees outside mainland China at this stage – a massive opportunity to save costs and implement different billing solutions.
- App developers can still run deterministic tracked campaigns with OEMs’ advertising ID. This is called an Open Anonymous Device Identifier (OAID), and isn’t subject to the same restrictions as with Apple or Google.
- Mobile OEMs also offer access to untapped audiences around the world, that marketers wouldn’t normally be able to reach via the Apple or Google Play Store
- Mobile OEMs offer higher user acquisition rates while paying lower cost-per-install. This cost effectiveness is perhaps the biggest benefit, particularly in the current economic climate. With mobile OEMs, advertisers only pay for installs, rather than working on a cost-per-click model – helping them to spend more efficiently on better-quality users.
As adoption of mobile OEMs continues to grow, increasing numbers of developers are turning to alternative app stores to help them reach their growth goals. AVOW’s latest ebook, Everything You Need to Know About Mobile OEM Advertising and Alternative App Stores, was developed to help brands better understand the industry – and covers ad formats, use cases per vertical, and how to set up campaigns. This is based on AVOW’s extensive experience and partnerships with the likes of Huawei, Vivo, OPPO and Xiaomi.
‘For years, GAFA’s unchallenged monopoly of the advertising ecosystem has determined how brands create campaigns. By working with mobile OEMs, marketers can reclaim their freedom of choice and still find ways to track and optimize campaigns,” commented Robert Wildner, co-founder and CEO at AVOW. “Alternative app stores are a viable option for brands from all verticals, from social entertainment to m-commerce and mobile gaming. As new regulations come into place across both APAC and Western markets, mobile OEMs should be a default part of businesses’ marketing mix in 2023 and beyond.”
“The continued rise of mobile OEMs and their foray into advertising signifies more than just a shift in market dynamics; it represents a call for developers to break free from traditional platforms and embrace the future of app distribution” added AVOW co-founder and CRO Ashwin Shekhar. “Our guide is the gateway through which brands and apps can be at the forefront of this shift.”
AVOW is a global app growth marketing company specializing in mobile OEM advertising. From its twelve offices across the world, AVOW connects clients with over 1.5 billion daily active users and boasts over 10 million monthly downloads. AVOW is the core Agency for top OEMs such as Xiaomi, OPPO and Huawei and is a premier solutions partner for Appsflyer, providing clients exclusive offerings. Working with renowned global brands such as Amazon Prime Video, My11, AirAsia, Exness, Didi Group, Unico Studio, KUMU, BYJUS, OctaFX, JOOM, Kredivo and Navi, the company helps marketers to easily access and buy advertising across alternative app stores, empowering them to unlock new markets and ensure a higher return on ad spend.
To access the ebook, click here.
