Cost Per Install (CPI) is a metric used in mobile app marketingto measure the average cost incurred by advertisers for each installation of a mobile application. It represents the total cost of advertising divided by the total number of app installations achieved within a specific time period. 

CPI is a common performance metric used by app developers and marketers to assess the efficiency and effectiveness of their user acquisition campaigns. It provides insights into the cost associated with acquiring new users and driving installations of a mobile app. 

The formula 

CPI = Total Cost / Total Installs 

Some key components 

  • Total Cost: This refers to the total amount spent on advertising and marketing efforts aimed at driving app installations. It includes costs such as user acquisition campaigns, advertising spend on various platforms, app store optimization, and any other associated expenses. 
  • Total Installs: This represents the total number of successful installations of the mobile application within a specific time period. It includes all instances where users download and install the app on their mobile devices. 

By dividing the total cost by the total number of installs, we obtain the average Cost Per Install. 

For example, if an app marketing campaign costs $5,000 and generates 1,000 app installations, the Cost Per Install would be calculated as follows: 

CPI = $5,000 / 1,000 = $5 

In this case, the average cost per install would be $5. 

CPI is an important metric for app marketers because it helps evaluate the efficiency and cost-effectiveness of user acquisition efforts. By comparing the CPI to other metrics such as user lifetime value (LTV), revenue generated from app users, or return on ad spend (ROAS), marketers can assess the profitability and success of their app marketing campaigns. 

To optimize and improve CPI, app marketers can employ various strategies and tactics, such as targeting specific audiences, optimizing app store listings, refining ad targeting and creatives, leveraging app install ads on relevant platforms, using incentivized campaigns, partnering with affiliates or influencers, and continuously monitoring and optimizing campaign performance. 

It’s worth noting that the acceptable CPI value can vary depending on factors such as the app category, competition, target audience, and monetization strategy. Different apps may have varying LTVs or revenue potential, and the acceptable CPI should be evaluated in relation to the potential long-term value those acquired users can bring to the app. 

In summary, Cost Per Install (CPI) is a metric that measures the average cost incurred by advertisers for each installation of a mobile app. It helps assess the efficiency and effectiveness of app marketing campaigns. By comparing the CPI to other metrics such as LTV or ROAS, app marketers can evaluate the profitability and success of their user acquisition efforts. Optimizing and improving CPI involves targeting the right audience, optimizing app store listings, refining ad targeting and creatives, leveraging relevant advertising platforms, and continuously monitoring and optimizing campaign performance.