Cost per install (often referred to as CPI) is a pricing model in digital advertising where advertisers pay every time when users install the app. It can also mean a KPI that indicates how much it costs to make users install an app.
In terms of pricing model, CPI is a preferred option by many marketers but is not offered widely by publishers. For marketers, it is a more effective way to spend money on ad campaigns and the model involves less financial risk. Publishers need to put more effort into this model than into click per impression and so they do not like to work on this basis.
In terms of KPI, it is a good way to measure how well the ad campaign is performing. If the cost per install is too high, it is better to check:
- your target audience: are you advertising to those who will be interested in the app?
- your channels: is it the preferred channel of your target audience? Are they actually using it?
- your creatives: does it attract attention? Are the benefits of your app clear? Does it have a straightforward call to action?
Dive deep into your analytics to find out and do not forget to A/B test to learn what performs better.
