Cost Per Install (CPI)

Definition of Cost Per Install (CPI)

Cost Per Install (CPI), which refers to the cost per installation, is the amount that an advertiser needs to pay for each application installation. In simple terms, when an advertiser promotes an application through various advertising channels, the fee paid to the advertising platform for each effective application installation is the CPI.

Factors Affecting CPI

Industry competition

The competition level of mobile apps varies across industries, and the CPI is often higher in competitive industries. For example, the game and social app markets are highly competitive, and advertisers often need to pay more to acquire users.

Target Audience

The more precise the target audience is, the lower the CPI may be. Because the precise target audience is more likely to be interested in the application and install it. On the contrary, if the target audience is too broad, it may lead to an increase in invalid exposure, thus increasing the CPI.

Advertising materials

High-quality ad creatives can attract users' attention, increase click-through rates and installation rates, thereby reducing CPI. The creativity, visual effects, copywriting, etc. of ad creatives will all affect users' reactions.

CPI Calculation and Optimization

The formula for calculating CPI is simple: CPI = total advertising costs ÷ number of app installations. Advertisers can optimize CPI in the following ways:

Accurately target the audience

Use the data analysis tools provided by the advertising platform to gain a deep understanding of user information such as age, gender, interests, hobbies, and geographical location. Accurately target the target audience, improve the relevance and effectiveness of advertisements, thereby reducing invalid displays and clicks, and reduce CPI.

Optimize ad creatives

Design attractive ad creatives, images and videos to improve the appeal and click-through rate of ads. At the same time, ensure that the content of the ad is consistent with the actual situation of the application to avoid users uninstalling the application after downloading it due to inconsistency between the actual experience and the ad, and improve the retention rate after installation.

Test different ad strategies

Try different advertising delivery times, delivery areas, delivery forms, etc., and find the most suitable delivery strategy through A/B testing to reduce CPI and improve promotion results.

CPI and ASO (App Store Optimization)

Complementary

ASO mainly increases the natural downloads by optimizing the performance of the application in the app store, improving the search ranking and exposure rate of the application. While CPI advertising is to obtain the installation of the application through payment. The two can complement each other and jointly promote the growth of the application's download volume. For example, through ASO optimization, the ranking of the application in the search results is improved. At this time, the CPI advertisement is placed to further expand the exposure range of the application and attract more users to install it. Therefore, through Introduce ASO , which could significantly reduce CPI.

Data reference

During the ASO optimization process, CPI data can be used as an important reference. If a keyword brings a low CPI, it means that users corresponding to the keyword have a high acceptance of the application. Therefore, in ASO, you can focus on optimizing this keyword and increase its weight in the application title, description, etc.

User Quality Assessment

In addition to the number of installations, user quality is also a common focus for ASO and CPI. By analyzing the subsequent behavior of users brought by CPI ads, such as retention rate and activity, the quality of these users can be evaluated. If the quality of users brought by CPI ads is high, then in ASO, it can consider optimizing according to the characteristics of these users to improve the overall user experience of the application.

Cost Per Install (CPI) plays an important role in the mobile Internet advertising industry and ASO. Advertisers can optimize their advertising strategies and improve the number of app installations and user quality by using CPI indicators reasonably. At the same time, combining ASO optimization, it can achieve the organic combination of paid promotion and natural growth, laying a solid foundation for the promotion and development of applications.