What Is CPI (Cost per install) And how does it work

Mobile apps have now become an entity that is more than a medium of entertainment or socializing instead great businesses have now been set up on mobile apps. If there is a product idea or a brand you own then the best way to acquire attention or traffic can be done through a mobile app as well. You can have a website and app to the point that you will no longer need to resort to a brick and mortar store.

However, profitability matters the most if you intend to have an app as no business operates for free. The cost of gaining traffic and earning from it are two different concepts. Before you indulge in understanding both these notions further, you should have information about the key metrics that surround an app’s growth and success.

Tracking only the essential metrics

Now when it comes to tracking the relevant app metrics, the complete number exceeds over 20 different metrics so you just cannot give equal importance to each metric. For that, it is better to first begin with knowing the cost per install better. CPI, in other words, Cost Per Install is a type of mobile app metric that has its own importance and benefits.

Even if you are not aware of this metric or you have heard of it but you do not know why it actually matters then we have compiled all the required pieces of information for you.

What is CPI (Cost Per Install)?

The CPO statistics vary in different parts of the world but for Android apps, the estimated CPI is $.044 and for iOS apps, it is an estimate of $0.86. However, knowing the stats alone does not define what exactly CPI is. CPIs are only meant for mobile apps and the concept of a CPI cannot be used in other domains of online downloads.

When you rely on CPI or a related campaign, you will be working with different digital campaigns and ads. These ads are then meant to drive traffic towards your app. Every person or business that relies on CPI makes sure to separate the budget for its campaign.

How to calculate CPI (cost per install)?

Of course, for the complete calculation of the CPI campaign, you would first have to acquire a formula. The formula is not too difficult to calculate either. Just take the total cost and expenses consumed on placing digital ads and divide it with your app downloads

CPI= total digital ads/total app downloads

Now you should know that this number varies to an extent. The amount for placing an ad and its expenses are duly calculated through this formula. However, there is no fixed number for the total expenses to spend on a CPI campaign.

Running a CPI campaign

CPI campaigns are entirely related to the cost per install of your app. However, know that it cannot be done websites or any other software program or tool. To understand a CPI campaign better, first, make a decision as to why you need to run a paid campaign for your mobile app. What are the main reasons for this app promotion? Do you have any alternatives for advertising? Answer all of these questions first and then begin with running a proper CPI campaign.

The advertisements that are needed to be run on the app include different types and formats. You can choose to run the digital ads on your brand’s website or you can choose any other relevant format to do so.

Now first begin to understand the types of advertisements you have in total. The banner of your website can also serve as a medium for placing different relevant ads. As well as videos and promotional pictures where ads are placed.

Whenever the user clicks or accesses the site with the ad on it, the installation process for the relevant mobile app will begin. The app is going to be downloaded for free but the app’s owner or creator is going to be charged a specific amount for the CPI campaign that is running.

Know the importance of CPI

Knowing the process of running and building a CPI ad or campaign is not enough if you do not know the actual reason behind having digital ads. Understand all the metrics of apps that give you ease in having visibility, traffic, and increment in app downloads. Your marketing strategy along with its costs are greatly impacted through the use of CPI.

The only way you can get attention from your users is through marketing and different ad campaigns. Sustaining app quality is a difficult task and what is more difficult is when you have to generate traffic and retain those users at the same time but do not be disheartened as everything does take time.