What is CPI (Cost Per Install)?

What is CPI (Cost Per Install)?

CPI (Cost Per Install) is a pricing model in mobile app marketing where advertisers pay for each installation of their app resulting from a user's interaction with their ad. This model is specifically designed for driving mobile app growth, as it focuses on acquiring users who download and install the app, making it a highly targeted and effective strategy in app marketing.

How CPI Works in Mobile App Advertising

In a CPI campaign, the advertiser only pays when a user completes the app installation process. This makes it a performance-based pricing model, ensuring that you’re only spending your budget on users who show real intent by installing the app. The cost per install is often determined by factors such as the app category, target audience, and ad placement.

Platforms That Use CPI in Advertising

CPI is widely used on mobile app-focused advertising platforms, including Google Ads, Facebook Ads, Apple Search Ads, and in-app ad networks like AdMob and Unity Ads. These platforms offer advertisers the ability to target specific user demographics, devices, and behaviors, helping them acquire users that are most likely to install and engage with the app.

Benefits of CPI for App Growth

• Performance-Based: With CPI, advertisers only pay for tangible results—when a user installs the app. This ensures that marketing budgets are spent effectively.
• Targeted User Acquisition: CPI campaigns can be optimized to reach users who are more likely to download and use the app, based on behavior, interests, or app usage patterns.
• Measurable ROI: The cost-per-install metric allows app developers to track how much they’re spending per install, making it easy to calculate return on investment (ROI) and optimize for cost-effectiveness.

CPI vs CPA: Which is Better for App Campaigns?

While CPA (Cost Per Acquisition) focuses on paying for a specific action (such as a purchase or signup), CPI strictly focuses on app installs. CPI is the best model for campaigns where app downloads are the primary goal. However, for campaigns where long-term engagement or in-app purchases are the focus, CPA may be a better option.

Strategies to Maximize CPI Efficiency

• Target the Right Audience: Focus on users who are more likely to download your app based on their mobile behavior and interests.
• Use High-Quality Creatives: Engaging video ads or interactive content can encourage users to download the app.
• Optimize App Store Presence: Ensure your app store page is optimized with high-quality images, clear descriptions, and positive reviews to encourage users to complete the download process.

Examples of CPI in Action

Imagine you’ve developed a fitness tracking app and want to grow your user base. You could run a CPI campaign on Facebook, targeting users who have expressed an interest in health and fitness. You’ll only pay when someone clicks the ad, goes to the app store, and installs your app.