User acquisition (UA) is one of the most critical aspects of mobile app marketing. The cost of acquiring users plays a direct role in an app’s profitability, and understanding the most cost-effective strategies is crucial for any developer. Traditionally, app developers have relied on Cost Per Install (CPI) campaigns to drive app installs through various ad networks. However, a newer, more efficient option is emerging in the form of OEM-Ads (Original Equipment Manufacturer Ads), which provide a different way of reaching users at potentially lower costs and with higher engagement rates. In this article, we’ll dive deep into the differences between OEM-Ads and classic CPI models, and explore why OEM-Ads may offer a more cost-effective solution for user acquisition.
What are OEM-Ads and How Do They Compare to Classic CPI?
OEM-Ads are ads that are integrated into the native apps of mobile device manufacturers, typically in the pre-installed apps. These ads are displayed on devices even before users install any third-party apps, thus capturing their attention through system-level placements. Unlike the traditional CPI model, which relies on third-party ad networks like Google or Facebook to serve ads and charge advertisers per install, OEM-Ads are served through the device’s manufacturer, potentially reducing the cost of acquisition.
The key difference between OEM-Ads and classic CPI is the cost per user acquisition and the targeting method. While CPI campaigns involve paying for each app installation, the cost of OEM-Ads is often much lower because the ads are served through pre-installed, native applications, leading to more targeted users. Moreover, OEM-Ads leverage the pre-existing relationship between device manufacturers and users, enhancing the overall effectiveness and reducing the likelihood of wasted ad spend.
Why OEM-Ads are Cheaper than Classic CPI
The most significant reason OEM-Ads are often more affordable than CPI campaigns is that they reduce the reliance on expensive third-party ad networks. While CPI involves paying for each app installation, the cost of OEM-Ads is often much lower because the ads are served through pre-installed, native applications, leading to more targeted users. Moreover, OEM-Ads leverage the pre-existing relationship between device manufacturers and their users, enhancing the overall effectiveness and reducing the likelihood of wasted ad spend.
Traditional CPI campaigns often involve retargeting ads or ads served on social media or in-app networks, but these placements come at a cost, as they often require continuous bidding for ad placements, with costs fluctuating based on demand. By contrast, OEM-Ads operate through device-native ads, which are generally not subjected to such bidding wars, leading to a more predictable and cost-efficient way of acquiring users.
Comparing CPC vs CPI vs OEM-Ads: Cost and Effectiveness
When we compare Cost Per Click (CPC), CPI, and OEM-Ads, it’s important to look at several key metrics: user acquisition cost, user retention, and engagement. These metrics define how much advertisers pay per acquisition and whether the users they acquire will be loyal or simply part of the churn.
CPC and CPI are two models frequently used for user acquisition. In CPC, the advertiser pays each time a user clicks on the ad. While CPC can often lead to a lower upfront cost, it may not always translate into meaningful conversions or user retention. On the other hand, CPI charges for every user who installs the app, but this does not guarantee long-term engagement or retention.
OEM-Ads, by integrating directly with the device’s operating system and offering ads in the form of native device experiences, provide more sustainable engagement. The cost per acquisition tends to be lower because the ads are shown to users who are already interacting with their device’s pre-installed apps, rather than being “pushed” through third-party advertising networks.
The Benefits of OEM-Ads for User Acquisition
Cost-Efficiency: One of the most obvious advantages of OEM-Ads over CPI is the cost efficiency. Since OEM-Ads are served directly through device manufacturers, they bypass the need for middlemen and bidding wars between advertisers on traditional ad networks. This lower reliance on ad networks translates into reduced User Acquisition Costs (UAC).
Moreover, OEM-Ads allow for greater targeting based on the device manufacturer’s pre-existing relationship with its users. This means ads are shown to users who are more likely to engage, leading to higher conversion rates at a lower cost. With traditional CPI ads, targeting is more dependent on third-party networks, which can lead to less-efficient ad placements and higher costs.
Higher User Engagement and Retention: Another significant benefit of OEM-Ads is higher user engagement and retention rates. OEM-Ads are part of the native experience on the device, leading to a less intrusive interaction with users. Since the ads are embedded into apps that users are already familiar with, such as the device’s home screen or system-level apps, the experience feels more natural.
This integration also leads to a more seamless user experience, which results in better user retention. In contrast, with traditional CPI ads, users may be more likely to install an app because of an ad but abandon it shortly after, leading to lower lifetime value (LTV).
Case Study: Apptica’s Success with OEM-Ads
A real-world example of the power of OEM-Ads can be seen in Apptica’s case study. Apptica, a well-known mobile app analytics platform, found that by shifting from classic CPI campaigns to OEM-Ads, they were able to reduce their User Acquisition Cost (UAC) by a staggering 47%. The company benefited from reaching highly targeted users through OEM placements on devices, which led to better conversion rates and more sustainable growth.
Why Infatica SDK Is the Ideal Tool for OEM-Ads Integration
Infatica SDK offers developers a unique opportunity to tap into the power of OEM-Ads and alternative monetization strategies. By integrating Infatica SDK, developers can easily implement device-native advertising without intrusive pop-ups or ads that disrupt the user experience. With Infatica SDK, developers can reach users efficiently and seamlessly, ensuring consistent passive monetization.
The SDK provides detailed analytics for tracking ARPDAU (Average Revenue Per User), LTV (Lifetime Value), and eCPM (Effective Cost Per Mille), allowing developers to continuously optimize their user acquisition strategies. Infatica is compatible with both Windows and macOS, making it an ideal tool for cross-platform apps looking to integrate alternative monetization methods.
Key Advantages of Infatica SDK:
- Non-Intrusive Monetization: The SDK runs in the background, offering a seamless experience for the user while still generating revenue.
- GDPR/CCPA Compliance: Infatica ensures that all data collection practices comply with European and Californian data protection regulations, giving users peace of mind.
- Passive Revenue Model: With Infatica, developers can generate passive income without relying on traditional ad networks or invasive CPI strategies.
Metrics for Evaluating Success: ARPDAU, LTV, and eCPM
To fully measure the success of your user acquisition efforts through OEM-Ads, it’s crucial to track specific metrics such as ARPDAU (Average Revenue Per Daily Active User), LTV (Lifetime Value), and eCPM. These metrics provide insights into how effectively your monetization strategies are performing and whether your acquisition cost is sustainable in the long term.
According to AppsFlyer’s forecast for 2025, the market for passive monetization strategies like OEM-Ads is expected to grow by 18-25%, with ARPDAU and LTV increasing by 15-20% as developers shift toward more sustainable acquisition models. This trend highlights the increasing adoption of alternative monetization methods that don’t rely on high-CPM, high-CPI campaigns.
Addressing Common Concerns: Battery Life and Performance
One of the common concerns developers have when adopting SDKs for monetization is battery consumption and whether it will affect the app’s performance. Infatica SDK is designed to be lightweight and optimized for minimal battery usage. Unlike traditional ad models that disrupt user experience, Infatica’s passive monetization approach doesn’t affect the app’s performance or drain the device’s battery.
Clarifying Common Concerns
Does Infatica SDK consume a lot of battery? No, Infatica SDK is designed to run with minimal battery consumption, ensuring that users don’t experience any noticeable impact on their device’s battery life.
Will my app’s performance be affected by Infatica SDK? No, Infatica SDK is optimized for performance and operates seamlessly in the background without slowing down your app or affecting its speed.
The 7-Step Process to Maximize Growth with OEM-Ads
1. Evaluate Your Audience: Identify where your target users are most engaged and likely to convert.
2. Select the Right Monetization Model: Choose OEM-Ads as your primary user acquisition method for a cost-effective and sustainable solution.
3. Integrate SDK: Implement Infatica SDK for passive monetization and easy integration with your app.
4. Test Your App: Ensure that the SDK functions well across different platforms (Android, iOS, Windows, macOS).
5. Track Performance: Use Infatica’s analytics tools to monitor key metrics such as ARPDAU and LTV.
6. Optimize for Revenue: Continuously refine your monetization strategies based on the data.
7. Scale Globally: Expand your user acquisition strategy using the full potential of OEM-Ads and Infatica SDK.
Infatica SDK Case: Puzzle Game Integration
In a hypothetical case where a puzzle game integrated Infatica SDK, the app saw a 30% increase in ARPDAU and a 20% improvement in user retention in just three months. The seamless integration of OEM-Ads resulted in a more efficient and less intrusive monetization approach compared to traditional CPI methods.
Conclusion
The shift towards OEM-Ads as a user acquisition strategy is not just a trend but a long-term solution for lowering user acquisition costs. When paired with tools like Infatica SDK, developers can seamlessly integrate non-intrusive monetization methods that not only reduce costs but also improve user retention and engagement. This approach ensures sustainable growth while maintaining a smooth user experience.
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