What Is CPI?
Are you an app owner who wants to find the best marketing strategy for his product? Or, do you want to offer some space inside your app for promoting other apps? Either way you are probably thinking which pricing model is the most appropriate for your plan? Today we will talk mostly about Cost Per Install (CPI) since this system is focused on mobile apps. In short terms, CPI is a marketing method where the payment is made only if the app is installed on users’ devices after they clicked on an ad. But let’s find out more about that.
Main Digital Advertising Methods
For start, you need to understand the main options available for advertising an app. Besides the CPI model there are others which can influence the way you drive your campaign.
Cost Per Mille (CPM)
This is a system where the price depends on the number of impressions served. The charge is made by mille, which means that the payment is made after 1000 times the ad is shown to potential customers. CPM is used by publishers with the goal to increase awareness of the app.
Cost Per Click (CPC)
CPC as you probably figured out means that the ad network receives money every time viewers click on the ad. Be careful that a click on the ad doesn’t mean that people will install the app for sure. On the other hand, it is the advertiser’s job to display your app to a target audience for increasing the number of taps.
Cost Per Install (CPI)
When choosing this model, publishers are charged just for the number of downloads for that specific app. The main purpose of this procedure is to gain visibility in app stores.
Cost Per Action (CPA)
Also named Cost Per Engagement (CPE) or Pay Per Action (PPA), CPA is considered the price paid for specific actions completed by users, like watching a tutorial, making a purchase or accomplishing some tasks. Of course, the ones that choose this type want to make sure the app is not just installed, it is also used accordingly.
Difference Of CPI Model
With every method, there are pros and cons according to your strategy. For CPC it is easier to understand why users click or not on your ad and it can be cheaper than CPI only if you have the right tools for conversions. On the other hand clicks don’t mean that you gather more users. CPM is more efficient with rich media like videos and interactive ads and it is suitable if you want to bring your brand in front of customers. For CPA you obtain more than installs, since users must download your app to complete the action. The problem is that the cost is higher than the other methods and it is complicated to discover which activities should be included into your strategy. As you can see there are many elements for you to consider when selecting one of the pricing models.
CPI Varies Depending On:
There isn’t a CPI available for all apps. There are many elements that determine the cost for every download.
User’s location is a very important factor in setting the CPI. The price is dictated by the lifestyle of the people who lives in those specific countries. For example, in Australia and countries from northern Europe the CPI is significantly bigger.
The cost for each install is different from iOS apps to Android apps. While the number of devices provided by Apple is smaller than the ones sold by Google, mostly because of the prices, the ones that choose iOS are considered with deep pockets which will eventually translate in more in – app purchases. So, the CPI for iOS is higher than for Android.
Each media channel has its own CPI, according to the services offered. Social platforms like Facebook or Twitter have higher rates due to their popularity.
Not all app types have the same CPI. The price is set by app category. It is known the fact that games have a more expensive CPI because players are more willing to spend their money inside the app. Also, not all games have the same price.
Seasonal Effects (In Special Days CPI Rate Is Higher)
Of course, if you choose to run your campaign during winter holidays the budget must be substantial.
Is CPI Really Worth It?
There are various opinions regarding this question, but let’s check the advantages and disadvantages of this method.
- CPI campaigns target your app’s niche audience. For gathering as many installs as possible your ad will be shown to potential users which are interested in apps similar to what you offer.
- Guaranteed Installs, get what you paid. If you want downloads, that is what you will have.
- Swiftly creates buzz around your app. During the app launch or in other moments when you need to increase the popularity of your app this is the solution for your intent.
- Costs get higher in accordance with competition in each app category. If you want to promote a game which runs on iOS in a country like Australia, then you must prepare your budget for this type of plan.
- It is a complicated process for Advertisers to create a successful campaign because you need to go and try several ad networks to get the best ROI out of your ad campaign.
- Drive low quality users. The main goal is to attract users. For engaging them you need to create additional plans.
User Acquisition Campaigns To Build Sustainable Growth Process
While every app owner wants as many users as possible it is very important what kind of users you will receive. As we already discussed, building a successful user acquisition strategy dictates the entire evolution of your app.
There are various steps you need to make for showing your app in front of valuable users from targeting specific audience to optimizing your app. Next, you need to choose between organic and paid channels to promote your app. Don’t forget to track important metrics for an efficient campaign. After that, change your strategy according to the results. Don’t forget that not any user is a good user for your app.
Eliminate Downsides Of CPI Campaigns By Using App Samurai Platform
If you consider that Cost Per Install is the appropriate method for your app don’t feel discouraged by the cons listed above. Working with professional platforms like App Samurai will help you minimize bad effects.
No Need To SDK Integration
- You don’t need to implement another SDK to use App Samurai Platform. You will have full control over your campaign without the worry that you need to integrate some extra SDK inside your app.
Get Optimized/ Quality Traffic
- You don’t need to go with several ad networks and try them until you find an appropriate channel for a successful campaign. App Samurai helps you to funnel high – quality traffic for your campaigns.
- App Samurai Experts pick the best options among more than 50 ad networks for getting qualified users.
See Your Efforts And Results Side By Side (In-App Events, App Store Analytics, Ad Measurements)
- You can track your user acquisition, performance and in – app events in one dashboard. You are able to check in every moment the situation of your strategy.
- Control how much you spend on paid campaigns and return of your investments from it to optimize for the best. For lowering the risk you can keep your eye on costs and realize what worth and what doesn’t.
- Optimize accordingly: Open Rate, In – App Purchases, Number of Logins etc. As we already mentioned, Tracking In App Events is a crucial stage during the entire process for promoting your app.
Easy To Create Ad Campaigns
It is not enough to decide that you go with CPI model. It is important to know how to create your campaign. App Samurai will be by your side for each step you are making for optimizing your campaign.
Get Unique Recommendations
After App Samurai created more than 4000 ad campaigns for reaching more than 5 million installs we are able to advice you in the best possible way for creating a successful strategy.
After we discussed about efficient methods to reduce customer acquisition costs, it seemed logic to go into details and to talk about Cost Per Install. We listed advantages and disadvantages that come with this method, so you need to take into account various elements according to your app. Keep in mind though that a team of experts will make the whole process easier for you and it will reduce the downsides of this system.