• Casey Ordona

What is the Mobile App CPI Metric?

Updated: Dec 3, 2019

So, you’re ready to launch a mobile app for your business.

First of all, congratulations!

That is a big step you’re about to take in securing your company’s growth and success.

But, you might have some financial questions about running an app.

After all, whether you come from e-commerce or a classic streetside business, a mobile app investment isn’t quite the same.

Don’t worry! We’ll get through it together.

Let’s just focus on your basic mobile app metric: CPI.

What is CPI?

CPI stands for Cost Per Install, and it is the key mobile app metric to keep track of.

CPI involves the strategic placing of digital ads to direct traffic to a specific mobile app for the purpose of installation.

When somebody downloads the app, the business is then charged a rate for the installation.

Keep in mind that CPI is only a mobile app metric.

It doesn’t work for any other kind of digital media outlet, such as a traditional website.

CPI is kind of like a CAC (customer acquisition cost.)

But unlike CAC, this metric can track specific campaigns, so it’s an extremely handy metric.

Like I said before, CPI is a crucial metric, as it helps you track your mobile app marketing budget, which is the hardest thing to do with mobile app development.

CPI Formula

So, how do we calculate CPI?

Luckily, there is a very easy formula.

All you need to do is divide the total amount you are spending on ads by the number of app installations.

See? That wasn’t so bad.

How to Launch a CPI Campaign

Of course, since CPI is purely a mobile app metric, campaigns work a little bit differently from other types of sales campaigns.

Obviously, like any campaign, you want to generate awareness of your app and encourage engagement.

Engagement, in this case, means downloads and usage.

So, you may decide to pay for advertisements in order to promote your application.

Your advertisement is then placed within other mobile apps and/or websites to reach an appropriate audience for your app.

There most popular advertisement format are as follows:

  • Banner: horizontal image that usually placed at the top of a web or mobile window.

  • Interstitial: a full-screen advertisement.

  • Native: a flexible ad that formats intuitively with the website that it is placed in.

  • OfferWall: incentivizes the user with a reward.

  • Video: as opposed to a fixed-image ad.

Important CPI Stats

When deciding on how to approach your CPI campaigns, you may want to know the statistics in order to curate your strategy appropriately.

Here are the average CPI costs:

  • Worldwide app user cost: $2.89

  • Android app CPI: $0.44

  • iOS app CPI: $0.86

  • Android CPI for United States only: $1.20

  • iOS app CPI for United States only: $2.37

Here’s the average Android CPI by country (cheapest to priciest):

  • Egypt: $0.06

  • Brazil: $0.09

  • Thailand: $0.10

  • Peru: $0.11

  • Puerto Rico: $0.19

  • China: $0.22

  • Italy: $0.22

  • South Africa: $0.40

  • Sweden: $0.43

  • France: $0.49

  • Germany: $0.52

  • Canada: $0.73

  • Denmark: $0.75

  • Norway: $0.78

  • Switzerland: $0.78

  • United Kingdom: $0.80

  • Australia: $0.90

  • New Zealand: $1.00

  • United States: $1.20

  • Japan: $1.48

Now, here’s the average iOS CPI by country:

  • Egypt: $0.22

  • Brazil: $0.22

  • Thailand: $0.32

  • Peru: $0.24

  • Puerto Rico: $0.43

  • China: $0.98

  • Italy: $0.40

  • South Africa: $0.91

  • Sweden: $0.88

  • France: $0.66

  • Germany: $1.17

  • Canada: $1.53

  • Denmark: $0.99

  • Norway: $1.52

  • Switzerland: $1.84

  • United Kingdom: $1.32

  • Australia: $1.55

  • New Zealand: $1.39

  • United States: $2.37

  • Japan: $1.80

Now let’s take a look at the cost per region:

  • North America: $2.59

  • South America: $0.75

  • Africa & Europe: $2.46

  • Asia: $1.22

Obviously, CPI can vary quite a bit from country to country.

Additionally, iOS CPI is quite a bit higher than Android CPI.

Generally speaking, Android dominates app installation in most parts of the world.

Its global market share is about 88%.

However, in the United States, iOS and Android downloads are about even.

So, if the United States is a prime demographic, it may not be a great idea to avoid iOS, in spite of the cost disparity.

The important thing to keep in mind, however, is that the rates should vary between iOS and Android advertisement.

There should not be a flat rate for both.

Do not allow rates for Android to be as high as iOS!

Some Last Thoughts

CPI is one of the most important metrics to keep track of for your mobile app, and a great CPI campaign can dramatically improve your engagement.

But keep in mind, just because somebody installs your app doesn’t mean that they will use it.

You still need to make sure that your app is of good quality with enough incentive for repeated usage.

Another interesting statistic to note is that iPad installs are much more costly.

At GrowSalesIQ, we exist to grow your customer acquisition, repeat purchase, and ROI with mobile marketing services such as omnichannel marketing automation, B2B lead generation, and custom-branded mobile app development.

Contact us to find out more about our custom-branded mobile app service and schedule your free demo today!

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