All that you need to know about the CPI payment model in mobile advertising:

Setup ads (CPI ads or app install ads)

From this angle, look at the topic: Idea formation, designing, building and delivering your mobile app may have lasted for months. This app is intended to connect you directly to your loyal customers, which will allow you to engage with them deeply and make your brand an integral part of their daily lives. It’s natural that this difficult process will bring your business to a new stage.

The fact that it’s not so lovely is that your work will not end with the release of the app. Next, you need to be aware of the existence of such an application and then download them, install them and use them.

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Learn more about app install ads or CPI advertising model

The CPI title or cost per installation may simplify the nature of the process in a simplistic manner. As we explained earlier, and in the name of it, in installing ads (app install ads), the advertiser pays for advertising costs when a new installation has taken place.

The following will help you understand the underlying pseudo-CPI model, understand the CPI Marketing Principles (Enhance App Installations), and find out the differences with other types of mobile ads before launching your campaign.

Install Ads(CPI model) definition and formula

To begin with, having a comprehensive definition will help you a lot. One of the best and most comprehensive definitions for the CPI model is:

«CPI Ads or Cost Per Install are for mobile apps. In a CPI campaign, the advertiser attempts to increase the number of installing an app, placing his digital adverts on a specific media outlet. The advertiser’s brand will only pay a specific amount or rate for each new installation that occurs for the app. “

The formula for calculating the cost of advertising for installation is relatively simple and in the same order as its name: The total amount paid to display ads divided by the total number of new installs, will be the cost per advertiser per installation.

CPI formula

What is CPI Campaign and Why is it important?

cost per install is one of the ways in which you can get an approximate look at the advertising budget and its delivery. In this model, the advertiser pays only the cost of an advertisement that has been created through a new installation, not just because of the ad (CPM ads or cost-per-mile).

This makes the advertising platform try to place advertisements at high conversion rates and target them to the right audience.

Given the higher value the app installs than the ad’s appearance, CPI campaign costs will be even higher. It varies depending on the platform (iOS or Android), ad type, and other factors.

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Why app install ads / CPI advertising is considered a reliable benchmark?

In May 2016, one of the most reputable mobile advertising and online advertising companies in the world, stopped displaying CPI campaigns in its performance reports. The justification for the company was: “The CPI model still has its own unique role, but in assessing the success of application marketing, it should no longer be considered as a core criterion.” The logic emerged from the growing reports that the “app tab” dropped out among mobile users.

According to the reports, mobile users these days are installing fewer apps than the past, and they use a smaller number of them. For this reason, the mere installation of an app can not remain a good measure to measure its success.

The issue also adds to the weight of the idea, along with the fact that many successful apps are free and their revenue is realized through in-app payments or e-commerce.

But with all this, when talking about the app itself instead of a product primarily intended for Internet sales, the CPI is still a more reliable indicator than the CPM. The CPI for gaming applications is also a fantastic benchmark, especially if its payment is subject to a specific achievement in that game, which in turn will be a much more powerful indication of user interaction with that software than merely installing the program.

Clearly, CPI advertisers are aware of the downside of the app’s fever among users; this is the alphabet of their work. Secondly, there are several ways in which the cost model for installation can be given a high priority and added to the success rate of CPI campaigns.

Other criteria you can consider alongside the CPI are Cost per Loyal User, Cost per Engagement, or Cost per Purchase, the boundaries between their definitions are becoming more and more current. These items can generally be placed under the CPA or Cost per Action audience invoice.

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How to find the best CPI service provider for you?

There are a few things that you should consider when choosing your CPI provider or host. A well-targeted CPI campaign will usually be successful, but everything will depend on the detail. So it’s not bad at every campaign, consider the following:

Ads network or app collection:

Does the provider work with ad networks or has a specific set of apps on the side of the account that can put them on the ad? The first case involves a larger range, but the latter can be a better targeting, especially if the apps mentioned belong to a specific category. This brings us to the next issue.

Provider position on the market:

Does your CPI Campaign provider specialize in a wide range of apps and games, or in a particular type? Once again, it should be noted that this depends on your decision whether the scope of the campaign is more important to you or its accuracy in targeting. The answer to this question should be given according to the features of the app you are trying to promote.

Criteria:

The use of a well-defined and well defined two-way set of criteria can be very controversial, as the lack of coordination between the benchmarks of the parties is usually not a good result.

For example, if your app is downloaded free of charge and in turn is dependent on internal payments for making money, downloading or installing it alone can not be a good measure to measure return on investment or its ROI. In this case, you should pay attention to the event that gives you value. This value can be the first purchase, the first payment, or reaching a certain stage of the game (CPA Campaigns).

Whatever your criteria, the platform you choose should be able to provide the right tool to measure them.

Prices:

It’s natural for you, like any other business, to pay a decent price for your mobile ads. The average rate of this service depends on a lot of factors, but other costs may also be associated with the process that you should consider, including the commission itself, the platform’s advertising network, or the process itself. Keep in mind that you can not necessarily pass all of these costs, but it is important to have at least self-awareness at all costs in order to have a better budget for your CPI Ads.

These are some of the things that you need to consider when setting up your CPI campaigns when choosing your mobile advertising provider.

Getting to know the options available

As an application publisher, you need to know how to advertise your apps and convince a huge number of users to download and install them. There are several options for you.

One of the most effective options for you is to advertise your app into other mobile apps and apps that are similar to the users of your potential users. This method can take various forms based on how ads function and how they pay:

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  • CPM model or Cost Per Mille that, which is the initiator of digital advertising, is an old term and its roots are back to print advertising. CPM is a costing model based on every 1,000 visits, and is designed to create awareness of a great brand or app. In this way, brands pay their advertising costs for the amount of advertising that a mobile advertising platform provides for each ad.
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  • The CPC or Cost Per Click model is another way to focus on ad performance than CPM. In this way, brands pay only if the user clicks on or clicked on their ad. The effectiveness of this form of advertising is that the advertising platform of the presenter also benefits from the correct implementation of the advertiser’s side. In other words, displaying advertisements at a site with the highest probability of user interaction with that ad in favor of the advertising platform and thereby earning more money.
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  • CPI or Cost per Install model is assigned to mobile apps. In a CPI campaign, or “cost per installation,” publishers place their digital ads on a range of media, hoping to boost the number of new installs of the ad-supported app. The advertiser’s brand will pay a certain amount for each installment directly generated by these campaigns.
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  • CPA or Cost per Action model, also known as Pay per Action or PPA, is a pricing model for online and mobile advertising, in which the advertiser only pays for the actual implementation of the action by the user after installing the app. This action is defined according to the advertiser’s need and can cover things such as filling in the form, purchase or order.

Each of these mobile advertising methods can lead to more installation; in fact, the difference is in their cost calculation method. So, when you think of using mobile ads to attract more installers, you need to have a clear understanding of how well your campaign can measure success and cost.

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