Cost Per Install (CPI)- What It Is And How It Works


 Well, there are plenty of metrics that can be used for mobile applications, but CPI is the first choice of a lot of people. CPI may not be a familiar term for most people and if they have heard of this term, they may not be aware of what exactly it means. So, this blog would help you learn what the term Cost Per Installmeans and how it works.

What Does The Term Cost Per Install Or CPI Mean?

CPI or Cost per install is a pricing structure used in mobile user acquisition campaigns wherein the app advertises pay for every user that installs their application through their advertisement. It is a very common pricing structure and is used for mobile applications only.

When you decide to purchase on a cost-per-install basis, you need to keep in mind some important factors that influence the rate of cost per install.

The Formula Used To Calculate Cost Per Install

CPI = total ad spend / total installs

Why Is Cost Per Install Important?

Without any doubt, we can say that CPI is one of the vital metrics to monitor the proficiency of a mobile advertising budget as well as the number of installs possible to direct with a certain amount of investment.

To enhance the exposure of the audience and reap the benefits of connecting with new audiences, paid advertising campaigns are essential elements of an app marketing plan to target potential audiences.

Benefits Of CPI

Benefits Of CPI
  1. CPI campaigns help target app niche audience: To gain more installs your ad should be exposed to the target audience who are interested in buying your products/services.
  2. Guaranteed Installs to help get maximum ROI. If you are looking at more downloads, this is the solution
  3. Create popularity for your app during its launch

Well, the above points only state how important tracking CPI is to deal with the increase in downloads and it needs to be done by optimizing the following factors

  1. Creative performance of the advertisement
  2. Targeting
  3. CVR -App Store conversion rate for paid traffic which directly affects CPI
  4. Tap through rate

Costs For Mobile App User Acquisition

Costs For Mobile App User Acquisition

If you dive into understanding what costs are linked with a mobile app marketing campaign, you would understand that Cost Per Install is just one of the costs among various others like

  • Cost Per Registration
  • Cost Per Reservation
  • Cost Per Purchase
  • Cost Per in-app Purchase
  • Cost Per Subscription

In short, the above costs are related to certain actions made by people while using the apps, for example installing an app. It is because at this step mobile users do not have to pay anything, so this action is inexpensive where the app marketers want most users to engage.

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Cost Per Install (CPI)- What It Is And How It Works

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