What Is Cost Per Install? (Plus Advantages and Disadvantages)

What is Cost Per Install? Cost Per Install (CPI) is the price to acquire a new customer from paid advertisements. This metric refers to paid installs in contrast to organic installs.

Horrible Cost Per Install (CPI) and How To Fix It for Mobile Apps

Uses for Cost Per Install

Cost Per Install can be used by anyone interested in app marketing to gauge their advertising spending. But those who have standalone applications, like games, profit the most from using it. CPI data may be used by game developers to identify the most profitable or valuable market segments.

App marketers can use CPI to develop growth strategies based on behavioral or demographic insights. For instance, an e-commerce app for a company would be installed by existing customers and distribution platforms since the app already has a network. A gaming app or other standalone app can program their CPI to start charging after a player performs an action within the game or reaches a specific milestone, like leveling up.

What is Cost Per Install?

Cost Per Install, or “CPI,” is a metric that is specific to mobile apps and devices and measures the cost paid to acquire a new customer from paid advertisements. When a user downloads and installs your app on their mobile device, the ad network or publisher receives payment from you as the developer or marketer of a mobile app.

The cost of acquiring customers to buy a good or service is known as customer acquisition cost (CAC), and CPI is a specific metric for measuring this cost. Costs for any marketing tactics used to follow leads through the buying cycle may be included.

How to calculate CPI

To calculate Cost Per Install:

Let’s take an example where you spent $500 on advertising for your mobile game app and got 260 new downloads. 500 would be multiplied by 260 to obtain a $1 CPI. 92.

The formula looks like this:

Ad spend / Number of installs = Cost Per Install

Advantages and disadvantages of using CPI

Cost Per Install has both benefits and drawbacks as a success measurement tool.

Advantages

Some advantages include:

Disadvantages

The downfalls for CPI include:

What is a CPI campaign?

When you run a Cost Per Install campaign, you place advertisements across a variety of digital media in order to encourage people to download the advertised app. You pay the ad network or publisher when a user downloads your app onto their mobile device.

CPI campaigns are a tool that app marketers can use to increase their user base and improve their app’s position in app stores for mobile devices. Your Cost Per Install campaign, however, may be impacted by certain factors, such as:

How to execute a CPI campaign

To implement a CPI campaign for your mobile app, follow these steps:

Other metrics to consider

Cost Per Install is just one metric used to assess the success of an advertising campaign. Others include:

Track your revenue

Track Average Revenue Per User (ARPU), which is the typical monthly revenue you receive per user, to make sure you are making more money than you are spending to attract new users. This can assist you in calculating the lifetime value of your customers and testing your pricing strategy.

To calculate ARPU:

Let’s use an example where you had 5,000 users and made $1,000 per month. In order to calculate your ARPU of 20 cents, divide 1,000 by 5,000.

The formula looks like this:

Average Revenue Per User = Total Revenue / Customers

FAQ

How does cost per install works?

“CPI (Cost Per Install) campaigns are specific to mobile applications. Publishers run Cost Per Install campaigns to encourage users to download the advertised application by distributing digital ads across a variety of media. Only after the application has been installed does the brand pay a fixed or bid rate. ”.

How do you increase cost per install?

How to launch an effective cost-per-install app campaign
  1. Start with the right audience. Finding the right audience in the more than 4 million apps available on iOS and Android is essential.
  2. Know your metrics and re-engage your users. …
  3. Optimize towards post-install events or consider a CPE campaign.

What is a CPI campaign?

Cost per action, also known as CPA, is a type of digital advertising payment model that enables advertisers to be paid only for specific actions that potential customers take.

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