Glossary of Mobile Advertising Terms
CPI (Cost Per Install) is a common pricing model in mobile campaigns, where the app advertisers pay (fixed or bid rate) each time a user installs their app via their ads. The advertisers are only charged when the app is installed. To simplify, it can be said that CPI is a type of CPA (cost per acquisition) for mobile apps.
To calculate CPI, simply divide the cost of ad spend with a total number of installs, during a specific time period. Worth noting that some might use the term CPD (cost per download) to refer to CPI, but these terms are definitely not the same thing, because a user can download the app and fail to install it.
There are several important things to consider when using CPI like platform or geographic location. Especially platform, as things can be quite different on iOS or Android. Also, all of these factors will affect the price of the CPI.
Cost per install is an important metric in the mobile campaigns since it allows you to grow your audience, measure your advertising budget, increase your app ranking and more. As such, no matter if you’re a single developer, a startup or an agency, you should include this metric in your campaigns.