CPI by country refers to the variation in Cost Per Install (CPI) across different geographic regions, influenced by local economic conditions, user behavior, and market dynamics. As mobile advertising continues to grow globally, understanding these regional differences is essential for advertisers to optimize their user acquisition campaigns.
In this article, we will analyze what CPI is, explore the different rates of Cost per Install by country, other factors influencing CPI, and how to reduce it, along with its benefits and drawbacks.
- Cost per Install (CPI)
- Cost per Install by Country
- Other Factors influencing Cost per Install
- How to Reduce Cost per Install
- Benefits and Drawbacks of Cost per Install
- Conclusion
By 2025, app install ad spend is expected to reach 94.9 billion dollars, confirming the global growth of the mobile industry.
In this context, Cost Per Install (CPI) emerges as one of the most relevant KPIs for evaluating the effectiveness of advertising campaigns aimed at user acquisition. It represents the average cost an advertiser incurs to obtain an app install after a click on the ad. In other words, it measures how much it costs to turn impressions and clicks into actual downloads.
Cost per Install is calculated by dividing the total advertising spend by the number of installs generated in a specific time period: the former represents the advertiser total spend during the campaign, while the latter indicates the number of new users acquired.
The value of Cost per Install typically ranges from 1.50 to 5.00 dollars, depending on several factors such as Cost per Install by country, by platform or by app category (we will explore it in detail in the next paragraphs).
CPI by country varies significantly based on the geographic location of users, reflecting not only local market dynamics but also the socioeconomic conditions and mobile spending habits of different countries.
In general, more economically developed regions tend to have higher acquisition costs, as advertisers identify these markets with higher purchasing power and high-value users. In fact, users in countries like the United States, Canada, and Western Europe are more likely to buy digital content, fueling competition among developers and raising advertising costs. In contrast, regions such as Asia-Pacific, Latin America, and Africa, although having a larger user base, tend to have lower CPIs, partly due to lower purchasing power and in-app spend.
These differences in Cost per Install by country emphasize the need for tailored acquisition strategies, as cultural preferences and app store dynamics vary from country to country, making it essential for marketers to develop strategies that maximize campaign effectiveness and optimize ROI.
Moreover, considering the differences in Cost per Install across countries is also crucial when evaluating user acquisition channels. For example, you must be careful not to make the mistake of comparing different UA channels with CPIs of completely different regions.
2025 Cost per Install by country rates:
- North America: $2.5 to $5.00
- EMEA: $2.00 - $4.00
- APAC: $1.5 to $3.00
- Latin America: $0.50 - $2.00
While CPI by country is an important factor, it is not the only one influencing the cost of CPI. The app category, the operating system, and even the ad format are key elements that can significantly affect CPI costs.
The type of app can significantly influence Cost per Install, since different categories attract different levels of competition and user engagement. The type of app can significantly influence Cost per Install, since different categories attract different levels of competition and user engagement. For example, finance apps, especially trading apps, tend to have higher CPIs due to their competitive nature and the high-value users they target. On the other hand, hyper-casual games, with their simple and minimalist style, tend to have lower acquisition costs.
Beyond the app category, the choice of operating system also has a considerable impact on Cost per Install. iOS users are generally associated with higher purchasing power, especially in economically developed countries and regions such as North America, Japan, and Europe, requiring higher costs (on average, iOS CPI is around $3.60). On the other hand, Android, which dominates emerging markets like Latin America, India, and Southeast Asia, has more accessible acquisition costs, with an average CPI of around $1.20.
Lastly, among ad formats, video ads are more expensive, but they also have higher engagement rates. Moreover, interactive ads can reduce Cost per Install by up to 20% compared to traditional ad formats, offering more engaging experiences for users and better returns on investment (ROI).
Reducing the Cost Per Install (CPI) is crucial in order to maximize return on investment (ROI). Here are some useful strategies:
- Targeting: identifying and targeting the right audience is essential to optimize ad spend. By focusing efforts on a specific audience that is more likely to install the app helps avoid wasting money on advertising and reduces CPI.
- A/B testing and Creatives: experimenting with different ad creatives is essential to understand which messages and formats engage the audience the most. More appealing and relevant ads increase the chances of install, thus helping reduce Cost per Install.
- Retargeting strategies: targeting users who have already interacted with the app can be a cost-effective strategy since it leverages users' familiarity and leads to new installs at a lower cost.
CPI campaigns offer numerous benefits, making them a popular choice for apps looking to expand their user base, but they also come with some drawbacks to consider.
Let’s take a look at both benefits and drawbacks:
Benefits:
- Lower risk: Cost per Install campaigns are safer for advertisers since they pay only when a user installs the app and avoid unnecessary expenses for ad impressions or clicks that do not lead to actual downloads, thus reducing the risk compared to other pricing models.
- ROI monitoring: CPI campaigns make it easy to track acquisition costs and compare them with revenue generated by users, providing a clear picture of profitability.
- Optimization: Cost per Install is simpler and faster to optimize compared to other advertising models, allowing advertisers to quickly improve campaign performance.
Drawbacks:
- Users’ quality: focusing too much on reducing Cost per Install by increasing the number of new users, can lead to overlooking their quality.
- External factors: Cost per Install can be influenced by external factors like seasonality, competition, and market trends, making it hard to accurately predict costs.
- Cost Per Install (CPI) is a key performance indicator that represents the cost advertisers pay to obtain an app install.
- Cost per Install by country varies significantly, with higher costs in developed regions like North America and Europe, and lower costs in emerging markets such as Latin America and APAC.
- Factors such as app category, operating system, and ad format also impact Cost per Install, with games and iOS users generally resulting in higher acquisition costs.
- To reduce CPI, strategies like targeting, creative optimization, and retargeting are crucial for lowering acquisition costs and improving ROI.
- Cost per Install campaigns present both benefits and drawbacks that must be considered in order to make informed decisions.
