Cost-per-Install (CPI)

Cost-per-Install (CPI) is a key metric in mobile app marketing that measures the average cost incurred by an advertiser each time a user installs their app as a direct result of a paid advertisement. It is calculated by dividing the total marketing spend by the number of app installs generated from the campaign. For example, if a campaign costs $5,000 and results in 1,000 installs, the CPI would be $5.

CPI is vital for assessing the efficiency and effectiveness of user acquisition efforts, as it provides insight into the cost associated with gaining new users. This metric is particularly important because it helps advertisers ensure that the cost of acquiring users is lower than the revenue those users generate, often measured against metrics like Lifetime Value (LTV) or Return on Ad Spend (ROAS).

To optimize CPI, marketers can employ strategies like targeting specific audiences, refining ad creatives, optimizing app store listings, and continuously monitoring campaign performance. The acceptable CPI can vary based on factors such as app category, competition, and target audience, and should be evaluated in the context of the app’s long-term revenue potential.