If you are an app owner, you are very likely to think about the most profitable marketing strategies that will promote your app as much as possible effectively. Today we are going to talk about CPI model, that is widely spread for mobile area.

What is it?

CPI (Cost per Installation) method means that you will be charged if a user has installed your app after clicking a special advertisement.

Formula

CPI = expense on advertising / amount of installs from the ads

*Focusing attention to the number of installs only will be a bit unwise. As traffic is not only quantity, but it is quality a lot.

Result of this formula may depend on various things like time, CPI networks specificity, partners possibilities and season trends. For example, people are more often gifted with mobile devices in December, thus the installs of various apps are higher.

Cost per install mobile advertising prices depends on a lot where you publish your app, installations for iOs devices will be significantly more expensive than for Android on such promotion platform as Geenapp. It can be easily explained by a simple fact that there are more Android users, and more applications for them are developed, and is more popular for India and China. While for the USA, according to Fiksu, the situation will be a bit different.

Is cost per install advertising really useful?

There are different opinions about the approach. Let’s have a look at both sides of the coin.

Advantages

  • The ads will be shown to the audience that is more likely to be interested in you: as they know about you from similar ads.
  • What you pay is what you get: you can clearly track what each cent was spent for.
  • All the buzz will be quickly generated around your app – it is what you actually need.

What you should keep in mind

  • The better your success is, the more you pay for it. As soon as serious competitors will feel your power, the rates will rise.
  • CPI campaigns are not an apple pie, you will have to try several networks before finding your one.
  • You will have to struggle with a flow of low quality users and there will always be a lot of work to unite and engage your audience.

As you can see, CPI has its pros and cons, but there is nobody perfect under the moon.

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