Quick Answer: Cost Per Install (CPI) is a marketing model specific to mobile apps; a brand has to make fixed payments whenever the application is installed by the user.
CPI or cost-per-install refers to the cost associated with each installation of mobile application on different channels.
In the context of affiliate marketing, CPI is a marketing approach in which the advertiser makes payments to the publisher only in the situation that the advertised application is installed by the users on their device after they have visited the link in the ad.
CPI Model
It may sound strange, like why would someone give a payout when somebody installs a free application?
Well, when new apps are launched and new campaigns are initiated, people are looking to penetrate the market. App developers want as many people as possible to install the app and create a buzz.
So, if you want to get people talking about the app, then you must invest in CPI.
CPI is a mutually beneficial relationship; it connects users to advertisers and accepts the fact that publishers can deliver value to users without depending on them to perform a particular action.
The Economic Times has stated that CPI marketing continues to be the best buying method for advertisers who are making efforts to purchase traffic. It is a fast way to drive installations, but the quality of users depends on the media vendors.
CPI is also a cost-friendly method that is widely available; it invites traffic in vast quantities and it can be purchased at highly reasonable rates. Some CPI vendors boast a good rapport and work hard to sech for quality users and deliver to their promise. However, others rely on incentives in one application to encourage other users to install apps.
Though this does not mean that CPI results in good-quality traffic; most of the users attracted by CPI affiliate marketing are low-quality. This means that there are high uninstallation rates associated with this sort of campaign.
The fraud issue is also quite serious in this case. There are many fraudsters out there who use bots to boost CPI campaigns and gain revenue.
CPI Formula
The equation to work out the Cost per Installation is:
CPI= Total Amount Spent/ Total Measured Installs
CPI is often linked to cost per impression but that is quite meaningless. In contrast to this, CPM, or cost per thousand impressions, is used more commonly.
Why CPI Matters
If you are looking to enhance the app installs, then you must adjust your CPI and strategize the increase of your installs. You can also set the price to better accomplish your ROAS targets via a certain channel.
The CPI pricing model helps in minimizing the waste of time, resources, and other efforts spent. This approach is more focused and it only invites users who are genuinely interested in engaging with the application. Therefore, it poses a low risk for advertisers in comparison to other pricing models.
Final Thoughts
Cost per install is a popular way of encouraging people to download applications. It establishes a strong balance for advertisers and publishers; it also sets a more straightforward tone for the purchasing method chosen.
Businesses all across the world are using CPI to advertise their apps and offer irresistible incentives to people to install them.
You may challenge this may claiming that CPI traffic is not of much great quality in contrast to other models and is more vulnerable to fraud.
However, we have seen that the use of CPI in the affiliate market is becoming increasingly popular and will not be dismissed anytime soon.
