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It is very probable that you have heard about CPI campaigns if you are an app developer seeking to increase the number of users for your app. What is it, then, and how does it benefit you? This guide will help you in comprehending the specifics of the CPI payment model, as well as what CPI marketing and CPI mobile advertising are and how they differ from other metrics, as well as knowing which can be your best sources and partners for running CPI campaigns.
CPI Definition:
Cost per install (CPI) is used as a pricing model for mobile app user acquisition campaigns. The CPI is a predetermined price that the advertiser agrees to pay the publisher every time a user installs their app as a direct result of an ad served by the publisher.
CPI can be either fixed or variable, depending on the source/channel you're running app campaigns with. For example, Google and Facebook work with variable CPIs.
How to calculate CPI:
CPI= marketing campaign spend/ number of app installs
Let us clarify CPI marketing
Definition cpi marketing : Marketers refer to an advertising campaign as CPI marketing if the entire strategy is built around paying for each app install, or CPI.
Android vs Apple
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Appsflyer discusses the difference in CPI campaigns between Android and Apple, highlighting the fact that iOS users are known to spend more than the average android users. Indeed iOS tends to be more prevalent in higher GDPs countries like North America, Japan and Western Europe, compared to others where most users have android devices
Let's have a look at some stats to see if this is true:
Key Average Cost Per Install Statistics: (As of the end of 2021)
- Average CPI for mobile apps is $0.93 in APAC, $1.03 in EMEA, $0.34 in Latin America, and $5.28 globally (North America)
- Android app CPI globally (Google Play market): $1.22 iOS app CPI globally: $3.6
- CPI for iOS Games: $4.3
- CPI for Android Games: $1.15
These figures clearly represent this difference in CPI for Android when compared to Apple, which we can see will influence app install campaigns effectiveness.
Why should I be running CPI campaigns?
So the question we’ve all been waiting for, why are we giving CPI campaigns so much hype? Well let's look at some of the benefits to CPI campaigns:
CPI Campaign Positives:
- A reliable measure of the success of your campaign:
The effectiveness of your campaign for generating installs can be assessed using CPI, which measures your customer acquisition costs (CAC). A high install rate indicates that the right target demographic was reached by your CPI campaign at the right time with the right creative. - Compared to alternative pricing methods, there is less risk for advertisers:
There are several steps involved in installing an app. This implies that a user must have a high level of user intent and must truly want the app. As an advertiser, you lessen the risk of squandering marketing efforts by knowing that you are only paying for customers who truly desire your app and are thus more likely to interact with it, i.e LTV users.
You can understand why some advertisers choose CPI campaigns, a performance based pricing model, when you contrast it with other models like CPM where you pay only for your advertisement to be displayed and there is no assurance the user will take any further action. - Key for spreading awareness of your app:
A new app needs to appear in the app store rankings as soon as possible when it is released; otherwise, it runs the risk of getting lost in the sea of other apps. An effective CPI campaign will help spread the word about your software, which will increase its popularity and give it more exposure in the app store.
Takeaways
The ways in which CPI campaigns benefit your mobile app marketing is plentiful, with paid installs generated by CPI app campaigns can also help the rise of organic installs, allowing for app store optimization and higher ranking in the app store/google play store
Want to learn more about CPI campaigns? Take a look at more reads from our CPI campaign series:
