Magalu achieves 9x install growth and 25%+ average basket increase through mobile OEM advertising

The Customer

Magalu is one of the largest e-commerce platforms in Brazil.

Magalu distributes a wide range of products across various segments, including home appliances, electronics, furniture, toys, cosmetics, and sports accessories, through both physical and online stores.

The Challenge

Magalu faced challenges in scaling mobile OEM investments and maintaining ROAS.

Having utilized multiple user acquisition channels, Magalu aimed to diversify its reach by adding mobile OEM inventory, recognizing its potential to effectively target and acquire valuable users in Brazil.

AVOW sought to scale investments in OEM inventories while surpassing key performance indicators (KPIs) and delivering high-quality traffic that increases the average basket size (average purchase per user).

• Scaling investment in OEM inventories in Brazil.
• Maintaining sustainable eCPI while increasing investments.
• Achieving a positive return on ad spend (ROAS).
• Leveraging high-quality traffic from the OEM inventory.
• Ensuring clean, fraud-free traffic to the Google Play Store.

The Solution

Magalu partnered with AVOW to implement a comprehensive strategy aimed at achieving its objectives.

This approach focused on several key elements:

✅ Diversification of channels: Moving beyond programmatic, Google Search, and social media to find sustainable scale via OEM sources.

✅ Media product testing: Experimenting with a wide range of OEM placements, including display ads, preloads, interstitials, -1 screens, app stores, and push notifications.

✅ Tailored business models: Applying specific business models for each OEM and product based on performance metrics (CPI, CPC, CPM, and CPA buying).

✅ Fraud prevention & transparency: Ensuring a clean acquisition process without third-party networks or DSPs mediating the traffic.

Dynamic Preloads Campaign

Dynamic Preloads, AKA Google PAI (Play Auto Install), is a tool that automatically downloads apps from the Play Store. AVOW managed UA campaigns via Dynamic Preloads from multiple mobile OEMs for Magalu. The user flow with Dynamic Preloads assures higher engagement compared to traditional preloads since the user must opt-in to install the app during the smartphone’s initial set-up

Focus on Xiaomi & GetApps

App Featuring Ads during peak seasonality: AVOW leveraged a variety of dedicated  on-device placements provided by Xiaomi to engage and promote Apps in Brazil. Magalu partnered with Xiaomi on a series of “App Featuring” ads, such as their anniversary campaigns and mothers ‘day.

Placements such as interstitial, push notifications and lock screen brought high engagement by users, as impressions were delivered in exclusive daily packages on Xiaomi devices.

Featured on GetApps: Xiaomi has built an entire and proprietary ecosystem, including their own ad placements, payment solutions and app stores. AVOW partnered with Magalu and Xiaomi, providing an end-to-end service from integrations, to UA and down-funnel metrics for optimizations.

Xiaomi competes directly with Apple for #3 market share in Brazil, making it very relevant for any app developer to have its app published on stores aside from Google Play and the Apple App Store.

The Results

Magalu successfully scaled its mobile OEM media investment, increased average basket size, and ensured fraud-free user acquisition.

✅ Scaled investment: Magalu successfully scaled its investment in mobile OEM media by 50% year-over-year, achieving extended reach and exposure while maintaining user acquisition costs at the desired level.

✅ Average basket increase: The campaign’s success extended beyond user acquisition, with the average basket per user experiencing a significant increase as users were more likely to make higher-value purchases.

✅ Lowest fraud indicators: The user acquisition campaign with mobile OEMs provided fraud-free inventory, highlighting the effectiveness of fraud prevention measures and the trustworthiness of the acquired user base.

The Feedback

“AVOW continuously introduces new ideas and innovative solutions for OEM inventories, with an approach that keeps us ahead of the curve in our advertising efforts. Their ability to identify and leverage opportunities in OEMs has been instrumental in diversifying our user acquisition investments and connecting with our target audience effectively. They have truly exceeded our expectations and have become a valuable asset to our marketing efforts”

Marina, Diogo e Gabriela

Marketing Team, Magalu