What is Cost Per Install (CPI)?

What is Cost Per Install (CPI) in Mobile Marketing?

Cost Per Install, commonly abbreviated as CPI, is a pricing model used in mobile app advertising. It represents the amount an advertiser pays to a publisher or ad network for each successful app installation resulting from their advertising campaign.

For example, if an advertiser allocates a $10,000 budget to a publisher, which results in 5,000 app installs, the effective CPI (eCPI) for this campaign would be $2.

Calculating CPI (Cost Per Install)

The formula for calculating CPI is straightforward:

• CPI = Total Ad Spend ÷ Number of Installs

Let's consider a practical example:

• If you invested $500 in an advertising campaign for your app, which generated 200 new installs, your CPI would be:
• CPI = $500 ÷ 200 = $2.50
• This means you're paying $2.50 for each new user who installs your app as a result of this specific campaign.

Factors Influencing CPI (Cost Per Install)

Several factors can impact the Cost Per Install:

1. Geographic Location: CPI varies significantly across regions
2. App Category: Different app genres command varying CPIs. Hyper-casual games typically have a CPI of $1 or less, while mid-core and hardcore games can have up to five times that amount.
3. Operating System: iOS users tend to have a higher CPI compared to Android users. The average CPI for Android is $1.20, while for iOS, it's $3.60.
4. Ad Unit: The prominence and placement of the ad can affect CPI. More visible ad inventory often commands higher prices.

CPI (Cost Per Install) in Practice

While CPI is a valuable metric, it's essential to consider it alongside other key performance indicators (KPIs). Here are some practical considerations:

1. User Quality: A low CPI doesn't necessarily indicate high-quality users. It's crucial to balance CPI with metrics like user retention, engagement, and Lifetime Value (LTV).
2. Campaign Optimization: Regularly test different versions of your ads through A/B testing. This can provide insights into user preferences and behaviors, allowing for better ad optimization.
3. Audience Targeting: Ensure your ads are reaching people genuinely interested in your app. Proper targeting can significantly reduce CPI and improve overall campaign performance.

By understanding and optimizing CPI, app developers and marketers can ensure their advertising efforts are not only effective but also cost-efficient.

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