10:55 AM EDT, 03/27/2026 (MT Newswires) -- AppLovin's ( APP ) advertising engine Axon remains relatively unknown among advertisers, but creative fatigue, channel diversification pressure and improving measurement sophistication support long-term market expansion, Oppenheimer said Friday in a note.

The brokerage said small/medium brands and mid-market agencies do not consider Axon as a preferred channel, with most selecting Meta (META), Google (GOOG, GOOGL), TikTok and Pinterest (PINS) as their performance marketing stack. However, they were open to testing Axon, suggesting low awareness rather than product rejection, the investment firm said.

Marketing agencies said Axon's in-app gaming context is best suited for low-consideration, visually driven products. This aligns with its current product features including beauty, apparel and supplements, rather than business-to-business or big-ticket retail, according to the note.

Until Axon offers multi-touch or incrementality-native measurement, data-driven marketers will not allocate budgets to the platform, the firm added.

Oppenheimer maintained an outperform rating on AppLovin ( APP ) with a $660 price target.

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