What is Cost Per Install (CPI) ? Let’s start! Advertisers are charged only when their applications are installed by users that clicked on publishers’ ads.
What is a CPI (Cost Per Install)?
Once a consumer clicks on the ad and downloads the app, the publisher will be charged for the download.
Cost-per-Install (CPI) is the price an advertiser pays whenever the consumer installs the advertised application.
The payment for install refers to the variable payment for installation of a software, game or application (app) downloaded and installed on a computer, tablet or smartphone.
If you are into App Marketing, you probably met different ways to grow your userbase.
Cost-per-install is now one of the most popular models by mobile app marketers. Due to the ever growing popularity of mobile devices like martphones and tablets, mobile advertising has recently experienced a significant amount of growth.
As competition in mobile continues to grow, so too does the cost to acquire active users.
In a cost-per-install campaign, publishers place digital ads across a range of media in an effort to drive installation of the advertised application.
How Do I Calculate Cost Per Install (CPI)?
The formula used to calculate this number is straightforward: total ad spend divided by the number of app installs.
CPI = Total Installs / Ad Spend
For example; let’s assume that you spent $100 on your ads and got 100 new users. In this case, your CPI is $1.
Average costs per install are very changeable according to many variances such as ad unit, platform and country.
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