What is Cost Per Install (CPI)?
Quick Definition: Cost Per Install (CPI) is a pricing model in affiliate marketing and mobile app advertising where advertisers pay a fee each time a user installs their app as a direct result of an ad. It focuses solely on driving app downloads, making it one of the most common Cost Per Action (CPA) models.
An Introduction to Cost Per Install
Cost Per Install (CPI) is the go-to metric for User Acquisition (UA) campaigns. A CPI campaign’s goal is simple: acquire new mobile app users at a predictable cost. The advertiser pays a fixed or bid-based rate only after a user clicks an ad and installs the app.
This model underpins the mobile app ecosystem, helping developers grow their user base and track acquisition costs accurately. A mobile measurement partner or Offer Server tracks installs and attributes them to the correct ad network, campaign, and creative.
Why is Cost Per Install Important
Imagine an e-commerce brand wants to drive sales of its new running shoes.
- Primary UA Metric: CPI is the most common method for budgeting and measuring the success of campaigns that grow an app’s user base.
- Performance-Based: Like all Cost Per Action (CPA) models, this model ties payment to a specific result, reducing advertiser risk compared to paying for impressions or clicks.
- Scalability: It provides a clear and scalable mechanism for app developers to invest in growth.
Related Terms
- Cost Per Action (CPA): The broader category of performance pricing models to which CPI belongs.
- User Acquisition (UA): The overall process of gaining new users, for which CPI is the primary pricing model.
- Multi-Event Offer: A more advanced offer that might start with a CPI event and then include subsequent in-app actions for additional payouts.
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