CPI is a model specific to mobile applications. Mobile device users are constantly growing, so it would be wise not to miss the opportunity to work with this model. Your apps may reach a certain audience, but that ‘won’t be the maximum. If you promote your app, CPI marketing will be an effective marketing tool.
App developers and advertisers are always looking for new, creative ways to effectively promote their mobile applications in the fast-paced world of digital marketing. That is why the Cost Per Install (CPI) pricing model is developing from year to year.
By focusing on the end goal of app installations rather than just impressions or clicks, CPI marketing offers a transparent and cost-effective solution for app promotion. In this article, we will explore the fundamentals of the CPI pricing model, its benefits, and how businesses can leverage this strategy to maximize their app’s success.
Cost Per Install (CPI) Definition
CPI marketing, also known as Cost Per Install marketing, is a performance-based advertising model where advertisers pay for each successful installation of their mobile app. This method allows app developers to effectively track their marketing campaigns’ return on investment (ROI) and optimize their strategies to acquire high-quality users. CPI marketing campaigns provide a measurable and efficient approach to app promotion in a competitive digital landscape by focusing on actual installations rather than just impressions or clicks.
CPI is a specific type of CPA (Cost Per Action) campaign that focuses on the cost associated with acquiring installations for a mobile application. Unlike other CPA models that may track different actions, such as clicks or form submissions, CPI marketing centers specifically on the crucial metric of app installations.
The CPI model has become increasingly popular due to its effectiveness and speed in driving app installations. However, there are multiple approaches to implementing this model. One strategy is to invest effort in identifying the ideal target audience for app downloads. Alternatively, some advertisers opt for forced campaigns that redirect user attention to their application through other means. It’s important to note that these forced campaigns often result in lower-quality installations. Therefore, striking the right balance between targeting the right audience and avoiding low-quality installations is crucial for successful CPI marketing.
Here, too, we can not do without fraud. Smart bots can be tuned to the campaign behavior of this model and revenue collection. In addition to these stunt bots, advertisers run whole farms where people download apps. Be careful not to get poor-quality installations.
However, when working with this model, you also need to consider several factors, each of which affects the installation’s cost. Any deviation of one of the factors can affect the income. These factors:
1.Targeting
The totals in the CPI vary depending on the location of the audience. In different countries, users treat games and applications differently. Following the indicators to understand if you have set up correctly in this key. By the way, the US has the most expensive CPI nowadays.
2.User device
Applications on different platforms also have different work specifics. According to statistics, users of the iOS system are willing to spend more money on purchasing applications than users of Android devices.
3.Advertising location
Placing your advertising on different channels, you should clearly understand the distinctive features. For example, rates for social media advertising will differ from search engines and sites.
4.Application genre
Identifying your application to a particular criterion by genre or category can significantly affect the overall CPI. According to statistics, mobile games have a higher CPI than other applications.
CPI Formula
The calculation of CPI is relatively straightforward, involving a simple formula. The formula is typically expressed as:
CPI (installation cost) = total cost / total number of measured installations
Or, simply:
CPI = Total Ad Spend / Number of Installations
The total money spent on advertising or marketing campaigns promoting the app and the total number of app installations as a result of those campaigns is the two essential pieces of data needed to calculate the CPI. You may calculate the app’s cost per install by dividing the total ad expenditure by the number of installations.
For advertisers and app developers, this computation is essential since it enables them to evaluate the efficacy and efficiency of their marketing tactics. By tracking the CPI, they can evaluate their app promotion efforts’ return on investment (ROI) and make informed decisions to optimize their campaigns for better results. Additionally, CPI advertising provides valuable insights into the cost-effectiveness of acquiring new users, enabling businesses to allocate their advertising budgets more efficiently.
CPI Calculator
We offer our CPI Calculator to simplify your mobile app marketing campaigns. With the help of this simple calculator, you quickly determine the Cost Per Install (CPI) for your software, enabling you to assess the success of your advertising campaigns and improve your tactics. By offering fast calculations based on your ad spend and the number of app installations, our CPI Calculator equips you to make data-driven decisions and maximize your return on investment (ROI). Take control of your app promotion and drive success with our efficient CPI Calculator.
Select and try different values and scenarios to better deal with this model and come to a good profit.
Average CPI
Now many advertising networks and marketers prefer to use the CPI advertising model because of its average installation cost.
As we explained above, the average installation cost model depends on important factors. Below we will tell you about the average CPI, which is relevant at the moment:
- Average mobile app CPI – $0.93 (APAC), $1.03 (EMEA), $0.34 (Latin America), $5.28 (North America)
- iOS app CPI Globally – $3.6
- Android app CPI Globally (Google Play market) – $1.22
- iOS Games CPI – $4.3
- Android Games CPI – $1.15
- Facebook Ads CPI (2022) – $1.08
| Vertical | iOS CPI | Android CPI |
| Overall | $4.3 | $1.15 |
| Lifestyle | $2.96 | $2.00 |
| Puzzle | $4.53 | $1.11 |
| Simulation | $3.87 | $1.24 |
Please keep in mind that these figures are approximate averages based on industry insights. CPI indicators can vary based on factors like competition, seasonality, and the specific nature of the app and its target audience. Conducting thorough research and staying updated on current market trends is essential for obtaining accurate and up-to-date CPI indicators for your specific iOS or Android app and target countries.
Key Takeaways: CPI In Mobile Marketing
Marketers now very often use models of Cost Per Install so people download and use their application. For example, you can have a super convenient and necessary application, but without downloading. It is in this case that you can advance.
In mobile marketing, understanding the concept of Cost Per Install (CPI) is crucial for app developers and advertisers looking to optimize their campaigns. Here are some key takeaways you need to know while launching your CPI campaigns.
- CPI is a performance-based pricing model where advertisers pay for each successful app installation. It clearly measures the actual cost incurred for acquiring new users.
- CPI allows businesses to accurately calculate the return on investment (ROI) for their app promotion efforts, enabling them to make informed decisions about their marketing strategies.
- CPI varies across different countries and app verticals, with factors such as competition and target audience influencing the costs. Businesses can identify cost-effective acquisition channels by analyzing CPI trends and allocating their marketing budgets more efficiently.
- CPI can differ between iOS and Android platforms due to user behavior and market dynamics variations. Being aware of these platform-specific differences is crucial for optimizing app promotion campaigns. By leveraging the insights gained from CPI marketing analysis, businesses can enhance their mobile marketing strategies and drive success in the competitive landscape of mobile applications.
CPI indicator – is success in marketing component and promotion of your product, whether it is an application or game. As a result, it is important to understand that all CPI values vary greatly depending on many factors that we have already described: country, platform, genre, and so on.
Be sure to follow not only the main indicators that help improve the profit from the use of this pricing model. Track statistics and correct errors in time to avoid unpleasant outcomes.
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