CPI – Cost Per Install | Best Affiliate Marketing Model
Have you been looking for an actual meaning of CPI, or Cost per Install? Clear acquisition metrics are important for successful planning in mobile marketing, that’s why we’ll go over the meaning of various costs in user acquisition to clear things up for you.
What is Cost Per Install ( CPI )?
The cost-per-install shows how much it costs to install your mobile app through various channels. It’s important to note that in performance campaigns, cost-per-thousand (CPM) or cost-per-click (CPC) isn’t significant for calculating ROI because, in most situations, advertisers pay per installation rather than impressions or clicks.
Importance of the Cost per Install (CPI)
App Install campaigns are important because cost-per-install indicates the actual cost of obtaining an active user. But, as we’ve discussed before, it’s equally crucial in the start of mobile marketing also referred to as (cost-per-download).
CPD was originally designed to track the period when a mobile app was downloaded but not opened on the device, but advertisers have since realized that downloading isn’t a useful statistic because it doesn’t indicate any activity and could lead to fraud.
Let’s look at how it works to better understand this concept.
CPI campaigns use digital adverts to encourage the installation of a specific mobile app, and businesses are charged a fixed amount or bid rate each time the app is downloaded.
CPI – Cost Per Install’s Formula
Calculating CPI is not as difficult as it appears! The cost per install is calculated by dividing total ad spending by the number of installs, which is as straightforward as it gets:
CPI = Total Ad Spend ÷ Installs
Simply said, total ad spending is the total amount of money spent on a set of advertising, and total measured installs are the total number of app installs tracked by the advertiser’s server.
The overall amount spent on advertising will vary depending on a number of factors:
- A fixed sum or a bid amount can be used to determine to price.
- The rates you pay will also be determined by the ad networks and publishers you use to display your adverts.
Pros and Cons of CPI (Cost Per Install)
Here are some advantages and disadvantages that many advertisers have experienced:
Pros of CPI
- CPI campaigns are designed to reach out to a specific group of people who are interested in your app.
- Get what you paid with Guaranteed Installs.
- Creates a lot of buzz about your app in a short amount of time. This is the solution for your intent during the app launch or other times when you need to increase the popularity of your app.
Cons of the CPI
- Costs rise in line with the level of competition in each app category: If you want to advertise an iOS game in a place like Australia, you’ll need to figure out how much money you’ll need.
- It is a difficult process for advertisers to design a successful campaign because they must test different ad networks in order to obtain the highest return on their investment.
- Attracting low-quality users: Attracting users is the main goal. You’ll need to make additional arrangements to engage them.
Conclusions on CPI (Cost Per Install)
CPI is a crucial metric for an app’s success, and it’s also a simple formula to calculate. Focus on expenses that vary by device, operating system, and location, and make sure you discover the correct networks and publishers to satisfy your demands while staying within your budget.
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