What does CPI mean?
The CPI price is the amount paid per installation of an app on a mobile/cell phone.
CPI stands for Cost Per Install and is essentially a type of CPA campaign for apps. It is a new type of pricing model specifically designed to track installations on smart phones of apps.
Note: Payments are triggered on installs, not on users getting to an installation page. Therefore the CTR is not a good way to optimise these campaigns, as the Install Rate is between 1-4% (which means only 1-4% of clicks lead to an installation. This makes this type of deal kind of harsh for mobile publishers, however it is still mostly better than the alternatives (CPM rates on mobiles can be rock bottom).
The equation to work out cost per install couldn’t be simpler:
Click to enlarge
CPI = Ad Spend / Installs
The average Cost Per Install is over $3 apparently, and because of this many mobile ad networks have re-positioned themselves to focus on this type of advertising.
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Author: Justin Driskill
Justin is the founder of The Online Advertising Guide and a freelance Digital Projects Manager.