Top.Mail.Ru
CPI (cost per install) — Postmypost
Log in
Sign up
RU EN
Log in Sign up
Glossary – CPI (cost per install)

CPI (cost per install)

Nikiforov Alexander
Friend of clients
Back

Contents

Definition of CPI

CPI (cost per install) is a metric that indicates the cost of one installation of a mobile application. This term has two main meanings. In the context of advertising, CPI is used to assess the effectiveness of app promotion. The lower the cost of installation, the more successful the advertising campaign is considered. In this sense, CPI is a type of CPA (cost per action) metric, which reflects the costs associated with specific user actions, such as making a purchase, visiting a website, or installing an app. Given the vast market for mobile games and applications, CPI has become an independent metric recognized in the industry.

How to Calculate CPI

The following formula is used to calculate CPI:

CPI = advertising costs / number of installations

For example, if an advertising campaign was launched with a budget of 100,000 rubles and the number of installations was 4,200, then the CPI would be:

CPI = 100,000 / 4,200 = 23.80 rubles

It is important to note that there is no single standard for the CPI metric, as it depends on the niche and specifics of the application. Other metrics within the company, such as customer retention rate (CRR), churn rate (CR), and customer acquisition cost (CPL), are also taken into account.

Using the CPI Model

The CPI model is actively used for the rapid promotion of applications and attracting new users. Advertisers often turn to CPA networks, which act as intermediaries between clients and performers. The advertiser posts a task on the platform, specifying how much they are willing to pay for each installation. For example, they may offer 100 rubles per installation, after which webmasters or arbitrageurs begin to attract traffic.

The CPI model is particularly effective for promoting free applications, as potential customers are more likely to install an app without any upfront costs. The main goals of campaigns that use CPI include:

  • Rapidly attracting a new audience that can be monetized through purchases or paid features.
  • Promoting the app on platforms where the number of installations affects rankings in the Apple Store or Google Play.

Determining the Optimal CPI

Before starting work in a partner CPI network, it is essential to determine the optimal installation cost for your product. The average cost of app installation is $1-2; however, this amount can vary depending on the country, platform, niche, target audience, and creative formats.

For instance, CPI for iOS users is generally higher than for Android. Even within the same niche, installation costs can differ. Simple casual games may cost a minimum of $0.27, while complex games can reach $2.50. The main rule is that the CPI should be lower than ARPU (average revenue per user) to avoid losses.

There are several ways to determine the optimal CPI:

  • Studying publicly available data on competitors' statistics and establishing an initial cost based on their expenses.
  • Launching pay-per-click advertising to obtain an initial CPI and then lowering it.

How to Reduce CPI

Reducing CPI is a key task for optimizing advertising campaigns. Here are a few strategies:

  • Study the target audience: Understanding customer habits and motivations will help better tailor advertising campaigns.
  • Segment the audience: Different user groups require an individual approach to advertising.
  • Test creatives: Experiment with various formats and analyze their effectiveness.

It is crucial that advertising materials match reality; otherwise, users may install the app and quickly uninstall it, leading to unnecessary expenses.

Advantages and Disadvantages of the CPI Model

The CPI model has its advantages and disadvantages for advertisers:

Advantages:

  • Payment only for actual results in the form of installations.
  • Effective spending of the advertising budget.
  • The ability to quickly analyze campaign results based on the number of installations.

Disadvantages:

  • The risk of fraudulent schemes, such as using bots to inflate installation numbers.
  • Issues with the quality of the attracted audience, which can lead to high costs without corresponding results.

To assess the quality of the attracted audience, special tracking and analytics programs for applications can be used, such as Amplitude, Google Analytics, Adjust, Mixpanel, AppsFlyer, and AppMetrica, which will help analyze the effectiveness of advertising channels and user behavior.