Founded in 1957, Magalu (Magazine Luiza) has grown from a single store into one of Brazil's most recognized retail brands. Today, it serves millions of customers across physical stores, a large e-commerce platform, and a shopping app that covers a wide range of products and services.
In the competitive world of Brazilian e-commerce, where scale and profitability rarely align, Magalu partnered with Rocket Lab and Monks to find a smarter path forward.
GOAL
With Black Friday approaching, Magalu needed to grow its app user base without inflating acquisition costs. The goal was not just volume. It was quality. The brand needed to bring in users who would actually convert, while also reactivating an existing installed base that had gone quiet.
Magalu was already running Preload campaigns through Google Play Auto Install (GPAI), which placed the app directly on devices. But scaling that approach alone carried a risk: rising Cost Per Acquisition with no guarantee that installs would turn into purchases.
The team needed a way to connect installation to conversion, one that went beyond what GPAI could do on its own.
ROCKET LAB's solution
In collaboration with Monks, a global marketing and technology agency, Rocket Lab designed a full-funnel OEM strategy using First-impact Ads, its proprietary solution for User Acquisition and Retargeting within the OEM space.
A common assumption in mobile marketing is that OEM advertising begins and ends with Preloads. This campaign challenged that. By tapping into Native Display inventory within manufacturers like Xiaomi, Rocket Lab connected the upper and middle parts of the funnel to what Magalu was already doing through GPAI, creating a more complete and efficient acquisition path.
The strategy worked on two levels.
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On the acquisition side, while GPAI placed the app on the device, First-impact Ads Display campaigns reached users in high-attention moments, such as opening app folders or checking the notification screen. This drove incremental installs from users who were already showing purchase intent.
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On the retargeting side, the campaign focused on the installed base, including users who had received the app via Preload but never engaged with it. Through native operating system formats, OEM served as a low-friction reminder that brought those users back into the purchasing journey, without the saturation that typically comes with traditional ad networks.
Both layers worked together to address the full funnel at once.
CAMPAIGN RESULTS
The results came quickly. Comparing October, the baseline month, with November, the acceleration period, the improvement across every key metric was clear.
Cost Per Acquisition dropped by 36.1%. Return on Ad Spend grew by 36.4%. Conversion Rate increased by 32.2%, confirming that the traffic being driven to the app was high quality, not just high volume.
The biggest gain was in purchasing efficiency, which grew by 56.5%. In practical terms, Magalu went from generating around 39 purchases per R$1,000 invested in media to 61, in a single month.
These results showed something important: OEM is not just a top-of-funnel channel. When built correctly, it works across the entire user journey. By adding Native Display ads to an existing Preload strategy, Magalu lowered its acquisition costs, increased conversions, and turned passive installs into active customers.
First-impact Ads provided the missing link between having the app and actually using it.
WANT TO GET MORE FROM YOUR OEM STRATEGY?
Most apps are only using a fraction of what OEM advertising can do. If you are already running Preloads and want to connect them to real downstream performance, our team can walk you through what a full-funnel approach looks like for your app.
Get in touch with our team today.