Definition of Cost per install (CPI) in advertising
Cost per install (CPI) is a key performance metric in mobile advertising and app marketing that measures the total cost an advertiser pays each time a user downloads and installs their mobile application. This metric is crucial for app developers and marketers to understand the effectiveness and efficiency of their mobile app marketing campaigns across various advertising platforms and channels.
Usage of Cost per install (CPI)
Advertisers use CPI to track and evaluate the financial investment required to acquire new app installations. By calculating the total advertising spend divided by the number of actual app installs, marketers can determine the precise cost of attracting each new user. This metric helps businesses optimize their marketing strategies, allocate budgets more effectively, and assess the return on investment for their mobile app promotion efforts.
Mobile app developers and marketing teams typically leverage CPI across multiple advertising networks, including social media platforms, mobile ad networks, and programmatic advertising channels. The goal is to minimize the CPI while maximizing the quality and engagement of newly acquired users.
Related Terms
• Cost per acquisition (CPA): A broader marketing metric that measures the total cost of acquiring a customer or user, which can include multiple actions beyond just installation.
• Cost per click (CPC): A pricing model where advertisers pay for each click on their advertisement, regardless of whether an installation occurs.
• User acquisition: The process of attracting and converting new users to a mobile application through various marketing strategies and channels.
• Retention rate: The percentage of users who continue to use an app after installation, which is closely related to the quality of users acquired through CPI campaigns.
Related Questions about Cost per install (CPI)
What is considered a good CPI?
A good CPI varies by industry and app category. Typically, mobile game apps might have a lower CPI of around $1-$3, while enterprise or specialized apps could have a higher CPI ranging from $5-$10.
How can businesses reduce their CPI?
Businesses can reduce CPI by improving ad targeting, creating compelling ad creatives, optimizing landing pages, and focusing on high-quality traffic sources that are most likely to result in meaningful app installations.
Does a low CPI always mean a successful campaign?
Not necessarily. While a low CPI is desirable, it’s equally important to consider user quality, engagement rates, and long-term retention. A slightly higher CPI might bring more valuable and engaged users compared to a very low-cost, low-quality installation.
