What is CPI? How does it work?

June 21, 2021
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What is the cost per install? How does it work?

Cost per installation (CPI) is the price to get a new customer from paid advertisement. It is a significant metric for apps. Mobile applications are business enterprises.

Same as other businesses, your application has to be profitable in order to exist. So you need to track all certain metrics that are relevant to your business. So, what should you track?

Cost per install, is also known as CPI. CPI is one of the most valuable metrics for mobile apps. Through, there are different other metrics to target. Most people don't know the meaning of those metrics either. All in this blog we will discuss in depth about CPI.

What is the cost per installation?

Cost per install (CPI) is the exact campaign for mobile apps, where the advertiser needs to pay to a publisher when someone downloads the app from their network.

CPI is a special development for mobile applications. It cannot be used in other parts of your business. With CPI promotion digital advertisements are placed to drive signup for mobile apps. This process will take a price when the app is downloaded.

Cost per install is the value marketers pay to receive new customers through app install.

What is the formula for CPI ?

CPI (cost per install) is measured by dividing ad spend by the total number of app downloads connected with a campaign. In simple terms, divide the total spending on ads by the number of downloads.

Here, the formula for calculating CPI:

CPI =Total advertising spendsTotal number of installations

What are the benefits of cost per installation?

CPI-based campaigns focus on collecting the maximum number of application downloads for the lowest cost. Once the biggest advantage of CPI is the users engage with the application in the long term and it is the campaign that expresses the highest lifetime value.

If you wish to increase your rank in mobile app stores naturally, enhance your brand awareness, increase app install volume, and push application revenue, cost per install campaigns are the great choice.

Cost per install campaigns support a hype amount of downloads that leads to increased category rank in the mobile app store. Grow the awareness and keep as a cheap game still the customers choose to install an application that has ranking and greatest downloads in the app store.

Why is Cost Per Install valuable?

Cost per install is a critical factor for you as regards your marketing budget. CPI can be matched to customer acquisition cost. The value of CPI is also connected to the type of app you have.

For example- there is a difference between ecommerce apps and apps that are available with products or services. With an ecommerce app, you have a present business and network.

So you have another path to drive downloads from your recent users and platforms. This doesn’t mean you have no need for CPI campaigns. But these factors play a key role in apps like games.

This seems much beneficial to you still the act of regularly installing an app doesn't need to translate to usage. Although these types of details can need to be developed with the publisher that’s displaying the ad for you.

CPI promotion allows customers to install using App store or Google play or depends on the device they are using. This unsaure for perfect user experience when installing and networking with your mobile apps. It is likely to customize the CPI campaigns as per aims of the advertiser by fixing the location, audiences and publisher sites.

In some cases you can set the cost of the CPI campaigns to activate after a specific action is done,within the game like reaching a higher level.

What are the elements to consider when selecting a cost per installation agency?

Now you understand the basics and have good knowledge on CPI. It's time to select a CPI agency for your mobile app. There are a number of agencies, so how can you consider which one is good for you?

These are the elements that you need to take into consideration:


It is important to make sure that you achieve the right cost for the CPI campaigns. The lowest cost is any style. Whatever decision you are keeping, you need to show that the cost matches your budget.


There are special publishers who specialize in special niches. It is suggested to follow niche agencies. It is greater than focusing on a vast audience of downloads that do not result in usage. You need to help people who are using the app. If not, it means you are wasting your money.


Cost per install is highly valuable to the success of your app. It’s a light to calculate but before you dive in depth into CPI campaign. There are several statistics that you need to put into consideration.

With this guide as a mention to help you to achieve good knowledge at your costs. Want to know about cost per installation services, please contact us. So when do you plan to run CPI campaigns for your mobile apps?