You could have the most engaging, innovative, and revolutionary marketing campaign at your fingertips, but in the end installs are what matter most to mobile app marketers. That’s why cost per install — CPI — is among the most important KPIs a mobile marketer can measure. When entire advertising campaigns are based around this metric, we refer to it as CPI marketing. To find out why it’s relevant to you, read on!
In this context, CPI stands for “cost per install”, and should not be confused with the identical acronym for “cost per impression”. While marketing campaigns can exist for both, cost per install has become the dominant approach for the mobile advertising industry.
CPI is calculated by dividing ad spend by the total number of app installs generated by the associated campaign. This provides you with a baseline cost to acquire a single user.
CPI marketing campaigns use a pricing model built around install efficiency. Under this model, advertisers only pay for users that install the app after seeing an ad promoting it. Since CPI campaigns only charge advertisers for confirmed installs, marketers only pay for real users, and are able to protect their budgets.
While the benefits of CPI marketing are more straightforward than other pricing models, there are many details that determine its effectiveness. Any one of the following variables could have a massive influence on your ROI:
Calculating your CPI is simple enough, but generating the highest ROI for your spend will require other strategies. When running a new campaign, consider the following:
CPI marketing became a standard mobile advertising pricing model for a reason. It can better identify and target specialized audiences, measure interest in your app, and ensure ad spend is directed towards guaranteed installs. As such, it has inherent value for mobile marketers across all app categories and shouldn’t be underestimated.
If you need help maximizing your ROI while minimizing your CPI, reach out to the marketing pros at Tapjoy today.
Want to learn more about the world of in-app advertising pricing models? Check out “In-App Advertising Cost – The Complete Marketer’s Guide”.