It all starts with an app installation — the key step in converting potential users into paying, loyal customers.
As a marketer, your goal is to drive as many downloads as possible, as each install offers an opportunity for conversions and long-term relationships.
However, tracking CPI (cost per install), which evaluates how much you spend on each installation, is crucial.
The lower the CPI, the more profitable your campaigns will be.
In this post, we’ll dive into cost per install definition, the CPI calculation formula, and best practices to maintain an optimal CPI while driving growth for your app.
What Is the Cost Per Install (CPI)?
Cost per install or CPI stands for a predetermined price that the advertiser pays every time a user installs their mobile app as a direct result of an ad served by the publisher.
Simply put, CPI measures the amount you pay to acquire a new user who installs your app through paid mobile advertising.
This metric reflects the cost-efficiency of your user acquisition strategy. A lower CPI means a marketer acquires more users at a lower cost, leading to positive ROI.
Tracking CPI can help you gauge the effectiveness of your ad spend and optimize budgets for maximum impact.
How to Calculate CPI?
Here’s the CPI formula –
Here’s a quick example to consider.
Say – you spend $1,000 on a campaign and gain 500 new app installs.
So, according to the CPI calculation formula, your CPI would be – ($1,000 / 500 installs) = $2
CPI thus gives you insight into how much you spend to bring in each new user.
However, CPI is often confused with eCPI (effective cost per install).
Understand that CPI focuses only on paid campaigns.
On the other hand, eCPI factors in all installs, organic and paid, for a broader view of overall cost efficiency.
For instance, if the same campaign generated 700 total installs (500 paid + 200 organic), your eCPI would be lower, at around $1.43 ($1,000 ÷ 700 installs).
What’s the Difference Between CPI and Cost Per Mile (CPM)?
CPI and CPM full form are cost per install and cost per mille.
Both are crucial but distinct metrics in mobile advertising.
As discussed, CPI focuses specifically on user acquisition through app installations. On the other hand, CPM refers to the cost of displaying an ad to one thousand users, regardless of whether they take any action.
Simply put, CPM is more about generating impressions and brand awareness.
Hence, CPI is more effective for mobile app marketers aiming to directly measure the success of their advertising campaigns in terms of actual installs.
Key Factors Influencing Cost Per Install (CPI)
Here are four key factors that directly affect your cost per install.
Let’s break down how each one impacts your costs and what you can do to optimize them. Check out this table.
What Is a Good CPI?
A “good” cost per install (CPI) can vary according to your target market, industry, and marketing goals.
For instance, gaming apps typically have high CPIs due to the intense competition. On the other hand, utility apps have low CPIs.
Similarly, if your goal is rapid growth, a high CPI might be acceptable in the short term. For instance, a new gaming app may invest heavily in user acquisition during its launch phase to build a solid user base. While this may increase costs initially, it can lead to long-term success.
So, there’s no specific answer to what qualifies for a good CPI. However, you must ensure that your lifetime value (LTV) exceeds your CPI.
Consider your strategy to be effective if users you acquire generate more revenue than what it costs to bring them in.
Top 5 Tips to Reduce Your Cost Per Install
Here are the top five tips to minimize your Cost per install.
1. Optimize Your App Creatives to Boost Engagement and Conversions
There’s no overstating the power of a compelling creative can do.
The reason? Your app’s creatives are often the first interaction potential customers have with your brand. A strong creative can be the difference between a user scrolling past or taking action, making it pivotal in creating a lasting first impression.
So, ensure high-quality visuals with valuable content and clear calls to action. This can grab eyeballs and encourage app downloads.
For example, if you’re in the eCommerce sector, present your products with high-resolution imagery and promotional offers. Clear CTAs stating enticing offers like “shop now” or “get 30% off today” can drive high engagement.
Besides, run A/B testing on different app icons and screenshots. This can provide valuable insights into which designs attract more installs, helping you decide on visuals for maximum impact.
Say a bright-colored icon performs better than a muted one. Choose the version that consistently brings more clicks.
2. Enhance App Store Reviews and Ratings for Better Credibility
Positive reviews and high ratings aren’t just a “nice-to-have”—they can help build trust and drive installs. In fact, reports state that 93% of users agree that online reviews influence buying decisions.
This means a solid reputation can make or break your app’s success.
So, encourage satisfied customers to leave online feedback. For instance, trigger a review request when users purchase something within your app or achieve a milestone within the app.
Timing is everything. Ask for feedback when users are most satisfied. This way, you can ensure they leave positive comments.
What’s more? Respond to reviews promptly to imbibe among users that feedback is valuable. Take time to reply to both positive and negative reviews. This can send a message that you are willing to improve, which can help turn a dissatisfied user into a loyal one.
This way, you can improve your credibility and lower your CPI.
3. Use Relevant Keywords for Apple Search Ad Campaigns
Apple search ads can be your best bet if you use the right keywords.
Targeting relevant, high-intent search terms can help you reach users looking for an app and maximize your ad spend.
Conduct thorough keyword research by leveraging tools like Apple’s Search Ads or Google Keyword Planner. These tools can help you identify the terms your target audience is searching for.
For instance, if your app offers investment tracking, you can target specific keywords like “budgeting tool” or “financial planner.”
Consistently optimize your keyword list and adjust your bids. Ongoing optimization can help improve your ad’s effectiveness and, thus, lower CPI.
4. Leverage In-App Events to Increase User Engagement
Running in-app events like promotions, challenges, or seasonal content can be a great tactic to encourage new installs. Time-sensitive events can create a sense of urgency that motivates users to participate and interact with your app.
For instance, if you’re in the OTT industry, run a themed watch party event around a new movie release.
Highlight exclusive content during the event and promote it across social media channels, email marketing, and more. This can ensure maximum visibility and attract new users.
5. Utilize Retargeting Campaigns to Re-engage Previous Users
Reports state that the average click-through rate for display ads is only 0.07%. In comparison, retargeted ads achieve a much higher click-through rate of around 0.7%.
Hence, retargeting campaigns can prove a game-changer in bringing users who may have previously installed your mobile app but became inactive.
Target these users with personalized ads based on the user’s specific interests or behaviors.
Showcase something that might interest them, such as highlighting new features or content updates.
For instance, if you’re in the banking sector, retarget users with ads showcasing banking loyalty rewards.
Further, segment your audience based on their engagement, such as users who haven’t opened the app in 60 days versus 90 days.
Craft personalized messages for each audience segment. This can encourage users to re-engage with your mobile app.
How Apptrove Can Help Lower Your CPI
Our mobile measurement partner (MMP) – Apptrove, offers powerful tools and features that can help you optimize cost per install.
Here’s what you get with Apptrove.
- Real-Time Attribution: AppTrove’s unified dashboard offers granular, real-time attribution to help you track every user interaction, from clicks to installs and in-app ads.
Leveraging this data can help you optimize your ad spend by focusing on the channels delivering the highest return.
- Advanced Fraud Protection: Our MMP has robust fraud prevention tools that provide real-time protection against fake installs, click flooding, and other types of fraud. The system detects suspicious activity and prevents invalid traffic from affecting your campaign data.
- Granular Audience Segmentation: Its audience segmentation feature allows you to divide your user base into granular segments based on their behaviors, demographics, and engagement. Leveraging this data can help you build hyper-targeted marketing campaigns and encourage app installs.
- Seamless iOS and Android Attribution: AppTrove offers accurate attribution across iOS and Android platforms. This ensures that your marketing efforts are tracked regardless of the operating system.
- Customizable Deep Linking: Deep linking capabilities ensure that your customers are directed to the most relevant content in your app based on their intent. This can lead to a smooth onboarding experience when the user installs the app.
The best part? We provide round-the-clock customer support and offer a dedicated account manager to ensure you get the most out of the platform.
So, enjoy peace of mind with hands-on support that helps you resolve issues quickly.
Summing Up
CPI is one of the most crucial mobile app metrics for decision-making. Optimizing this metric can boost user engagement and drive installs without breaking the bank.
Lowering your CPI can help you make the most of your marketing budget. Implementing the five best practices shared in this post can help you get started.
Furthermore, you can choose our best-in-class mobile measurement platform – Apptrove.
It takes the guesswork out of optimizing cost per install. With its advanced attribution, fraud protection, and detailed analytics suite, you can ensure every dollar spent on acquisition drives positive outcomes. Talk to our sales team now to turbocharge your mobile marketing efforts.
