Cost Per Install (CPI)
Cost Per Install (CPI) is an advertising payment model where the advertiser pays for each installation of a mobile application made by a user after interacting with an advertisement.
This model is widely used in mobile marketing and app promotion.
How the CPI Model Works
The principle typically works as follows:
- A user sees an advertisement for a mobile application.
- They click on the ad and are redirected to an app store.
- They download and install the application on their device.
- The analytics system records the install.
- The advertiser pays for it according to the set cost.
Thus, payment is made only for the actual installation of the application.
CPI Formula
The metric is calculated as follows:
[
CPI = \frac{\text{Advertising spend}}{\text{Number of app installs}}
]
Calculation Example
Suppose:
- The advertising campaign cost €2000;
- The application was installed 1000 times.
Then:
[
CPI = \frac{2000}{1000} = 2
]
The cost per install would be €2.
Where CPI is Used
The CPI model is applied in:
- Mobile app advertising;
- Game promotion;
- Mobile app ad networks;
- Social networks and advertising platforms.
What Influences the Cost Per Install
Various factors can affect the CPI metric:
- Competitiveness of the app category;
- Quality of ad creatives;
- User geography;
- Target audience;
- App rating and reviews in the store.
Key Takeaways
Cost Per Install (CPI) is an advertising payment model in mobile marketing where the advertiser pays for each app installation.
It allows for precise measurement of the effectiveness of advertising campaigns aimed at acquiring new app users.
