Mobile App Development

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

September 9, 2021

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

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.
Guaranteed Installs to help get maximum ROI. If you are looking at more downloads, this is the solution
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

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

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.

How To Select A CPI Network?

You need to consider a lot of aspects when selecting a CPI campaign provider. For a CPI campaign to be successful it needs to be well-targeted. Hence, let us look at the things to be considered for the CPI campaign

1. Ad Networks Or Apps

You need to check if CPI network providers you wish to opt for work with advertisement networks or a collection of apps they specialize advertise in? The first option has a large scope and helps better targeting but if it is the second option then you need to think about the niche.

2. Niche

When selecting a CPI network, you need to check if the campaign provider has expertise in generic games or mobile apps. Does the provider have specialization in particular verticals? Well, this is something about selecting an option from the popularity of your advertisement and its accuracy. The answer is based on the features of your mobile app.

3. Metrics

Now, if you are allowing your audience to download the app for free which depends on in-app transactions to make money, then it can be done through easy automated download. But, it will not guarantee ROI.

Well, you would want to assure that you pay your advertisers only when the users they introduce offer value for your app. This will happen only when the users make their first purchase or spend some money or have attained a certain level in the game you offer. So, the platform you select should be efficient enough to provide metrics to monitor payouts.

4. Rates

You want to offer the relevant price to whoever you are advertising with and where you are advertising. There are plenty of platforms having software to monitor market averages & bid at different levels stated by you. But, such platforms come with a commission for using the platform, process, or ad network. Certainly, you cannot avoid the commission part but at least you are aware of the price you have to pay to budget constructively.

Final Words

Today, Cost Per Installhas certainly lost its initial impression on mobile app marketers but it still adds to marketing efforts. CPI campaigns help app marketers attain multiple goals like increase the count of users for their respective apps, increase the ranking of the app on Google Play or the App Store market, etc.

The reliable social networks offer profitable advertising platforms that mobile app marketers can leverage through their vast user profile data. Cost Per Install is a popular and effective metric that should be considered and optimized in combination with the Cost Per Action model that weighs app marketers' costs to attain particular actions for their applications like subscription, registration, in-app purchase, and a lot more.

If you are looking for an effective CPI campaign for advertising your app to gain maximum ROI, X-Byte Enterprise Solutions can help you get an app that follows CPI metrics for advertising your app and helping you get maximum ROI.

Bhavesh Parekh

Bhavesh Parekh is a Director of X-Byte Enterprise Solutions, an ever-emerging Top Web and Mobile App Development Company with a motto of turning clients into successful businesses. He believes that client's success is company's success and so that he always makes sure that X-Byte helps their client's business to reach to its true potential with the help of his best team with the standard development process he set up for the company.