Are you trying to find the most important metric for marketing of your apps? Are you researching CPI marketing? Do you want to know in detail about CPI (cost per install) and how to use it?
Do you want to find out the dos and don’ts of CPI marketing? Or are you looking for a way to understand what benefit CPI can bring to your marketing and what type of people use CPI for what type of products?
If yes, you came to the right place, CPI is one of the most important marketing methods that many people use but its most common among the developers and the marketing teams that are paid by the developers to market their app whilst getting the most out of their budget.
CPI Marketing 2023:
CPI stands for cost per install, and this states that the advertiser is paid money by the publisher of the app when a user installs their application.
This is different from cpc, cost per click which means that the advertiser gets paid once the user clicks on the ad, this is also a great way of advertising but many state what benefit would it being the publisher if someone only visits and doesn’t use their application or software, they only benefit when a user installs their application and starts to use it.
CPI is important, for that reason you must take some measures for tracking the engagement of your application and you must keep track of how many users downloaded your application through what advertisements, in order to track this type of engagement you can use the services provided by many “MMPs” which stands for Mobile Measurement platform, these MMPs give you access to the engagement details you’re looking for in your application, these platforms can tell you what number of users installed your app and what they did after installing your application.
Who uses CPI:
CPI is mostly used among developers and advertisers. Advertisers use cost per install because they want to find out how much it costs to acquire a new user for their app and developers want to find out how much they need to invest for their required result, in other words they need to calculate their return on investment which is also known as ROI.
If you are an app developer and are looking for your ROI then your CPI will be one of the “KPIs” which stands for key performance indicators, you can use the cost per install to summarize how effective your marketing is, and you can use it to monitor your campaigns and then you can decide where to invest in the future regarding your campaigns, if you have many campaigns running then you can use CPI there to analyze about what campaign is doing the most work for marketing your application and you can use this information to make an informed decision for your future investments.
It is considered important to analyze your marketing campaigns and it can prove to be far more effective than CPCs, which stands for Cost Per Click.
Cost per install comes with its perks, almost all the marketing teams use cost per install for different calculations and performance of their campaigns, CPI lets the developers know in detail about the range of budget required to reach the exact goal to market their app in other words, developers can understand and assess the lifetime value of a customer and price their app by finding out the cost to acquire a new user.
How To Calculate CPI:
CPI can be calculated by using a simple formula, which requires two things to be in your knowledge,
- Money spent on advertising.
- Number of people who installed your application.
So, if you spend $100 on advertising your application and get 30 downloads from the campaign you invested in, your CPI will be 100 divided by 30.
Once you use the MMPs, deriving this information will not be difficult, and once you get the required data, you can simply use the formula given below to calculate the CPI of your application:
“Money spent on ads/ number of downloads.”
Saying this, CPI is only used as a projection for eCPI which stands for “Effective Cost Per Install” which is normally used to calculate the result of a campaign. So, in simple words, CPI is only the estimate of what the campaign will give us in the end of it, and eCPI is the result of what CPI estimated.
Why is CPI Important To Use:
The essential ingredient for a successful application launch is its CPI, this is because that is how you calculate it. And if you want to know why it’s important to use, you must understand that it won’t matter how great your app is and what it brings to its users, if no one downloads it and no one knows about it.
Once you get into marketing by understanding the significance of the above statement, you can use CPI to do calculations that will enhance your marketing skills such as, you will be able to analyze your campaigns and then you can use that information to calculate how much money is required to buy one user for your application, which in return will help you get the most out of your investment that you put into your app.
You can also use CPI to analyze what campaign is doing the most work for your application and then you can put more money into it to enhance the reach of that specific campaign.
CPI has proven itself to be important and its importance doesn’t stop there, CPI can also tell you which form of messaging works best for your targeted users, and you can further use this information in making better decisions for your future investments regarding the marketing of your application, so in general CPI is the method of basically evaluating your marketing strategy, you can do even more by using other metrics in accordance with CPI to engage with more people through marketing.
How To Generate More Revenue Using Cpi:
Now that we have discussed the basics of CPI marketing and how it’s used, the question arises as to how we can use CPI to increase engagement and how to generate more revenue using CPI,
CPI is an extremely common way of pricing mobile application installation campaigns, the reason for that is CPI is a great way to get installations for your app.
It all depends on how to use CPI to your benefit and how much you can gain from using CPI marketing
1. Make revenue your primary interest:
Many users tend to uninstall the app, sometime after installing it. This is because of going to a vendor that provides low quality services which is not beneficial as the audience that sticks to your app for the long run is what actually drives your revenue, and getting installs is not difficult but keeping your audience connected to your app is, this is why the quality of app also matters.
Going to a vendor that provides you with quality results is worth going for and the key mistake that most marketers are making is that they don’t give importance to thinking about how the user will interact with the app after they install it, or what impression the app will give to them right after the user opens it.
Moreover, high download numbers will set wrong expectations for your app if the users don’t like your app and all they do is uninstall the app after installing it, and there is actually a little number of people that like your app.
2. Keep your eye out for fraud:
Fraudulent activities have only been increasing and especially in the marketing field, fraud companies come in various disguises and it’s hard to detect such activities if you’re not careful enough.
You need to monitor your app engagement from time to time, and it is considerably important to monitor your campaign data and keep an eye out for any suspicious activities because what frauds mostly do is that they change or modify the result and try to get extra cash out of you.
If you get a very high number of downloads from a single source.If you get the same behavior of usage from a group of users. You can avoid fraudulent companies by partnering and taking help from other companies that specifically offer to provide services like fraud detection and provide suitable technological solutions to your potentially fraudulent problems.
3. Understanding the behavior of your traffic:
Many marketers have been using incentive-based campaigns where they have gotten a lot of installs, but they have also analyzed that the users gained through a motive or incentive-based campaigns are not in it for the long term as they get rid of the applications as soon as they reach their incentive and satisfy their motive.
Incentive based traffic is not an organic audience, but it has the potential to give your app a good number of downloads which can eventually help you in terms of getting an organic and non-incentive-based audience. But you must keep in mind that people who come with a motive to install your application are not organic in any sense in other words, user loyalty is most probably not an option when using incentivized campaigns.
4. Monitor the behavior of users of your app:
You can use the behavior of users regarding your app in forming strategies and you can do so by using the following techniques:You can start by monitoring daily, weekly, and monthly active users of your app.
Ad networks are very important as they put your advertisements in front of potential users, and this is exactly why it is important to use the right one. You can do so by checking the following things in the ad network before subscribing to their services:
That the ad network is open about the rates and commissions for the ad campaigns.That you have the option to customize the campaigns that you have already set up.Attracting an audience is not a difficult task but attracting the right audience for your app can prove to be difficult for most of the people in this field.
What Is A Good CPI:
Now that we have discussed in detail about CPI, its uses and importance we should also discuss what is considered a good CPI, A good CPI changes according to the country, the platform being used, and the type of application that is being marketed.
The global CPI of 2021 was $2.21 and in 2022 it is around $3.6 for iOS apps and $1.22 for apps on Google Play market.
CPI In Different Countries:
Different countries have different average CPI rates, they undergo different changes which depend on what type of country you are working from, the reason for that is that a country’s size and its marketplace competition are huge game changers when it comes to generating CPI.
Some of the most expensive countries to acquire a new user are Denmark, Switzerland, Norway, Sweden and many more.
CPI for Android vs. Apple:
There has been a huge debate between two of the biggest brands regarding their prices and what features they provide, Apple has a separate fan-base that is fond of their devices and don’t like android devices, on the other hand android users don’t like apple devices and both have their reasons for what brand they chose.
From the perspective of CPI, it tends to be in larger prices when it comes to Apple users than Android users, the reason is simple, apple users are said to have more competitive prices in their products and it is one of the reasons why android users don’t use their products, this sets a boundary for both the users, which suggests that apple users tend to have more money and are considered wealthier than android users.
which is why more money is required to get an apple user to install your app rather than an android user. Which is why it is important to know this information when you’re setting up a campaign for apple or android users.
We have discussed in detail CPI and what it’s used for, and even what type of people it’s commonly used by, now that you have got the information that you’re looking for, we wish you the best of luck for your future.