Cost Per Install (CPI)

Cost Per Install (CPI) is a metric used to measure the cost incurred for each app installation driven by advertising.

Why it matters

Helps assess the efficiency of ad spend.
Crucial for budgeting in user acquisition strategies.

How to measure

Total advertising cost divided by the number of installs.
Typically evaluated over monthly or campaign-specific periods.

Details

CPI is a fundamental metric for mobile app marketers, providing insight into the cost-effectiveness of their advertising efforts. It helps determine how much is spent to acquire each new user through paid channels. Understanding CPI allows teams to optimize their marketing strategies by identifying the most cost-efficient channels and campaigns.

In practice, CPI is calculated by dividing the total advertising spend by the number of installs generated from that spend. This metric is particularly useful when comparing the performance of different advertising platforms or campaigns, enabling marketers to allocate budgets more effectively.

Examples & formulas

For example, if a campaign costs $10,000 and results in 2,000 installs, the CPI would be $5. This indicates the cost of acquiring each user through that specific campaign.

CPI = Total Ad Spend / Number of Installs

Common mistakes

Ignoring organic installs, which can skew CPI calculations. Use attribution tools to differentiate.
Overlooking the quality of installs, focusing solely on cost rather than user engagement or retention.