What is the Cost per Install?
The Cost per Install is one of the most important cost KPIs in Mobile Marketing. It sets the cost of a user acquisition campaign in relation to the number of new users generated by this campaign. Or in other words, it tells marketers how much money they need to pay on average for one new user.
CPI = Campaign Cost / New Users
CPI as a Payout Model
Many ad networks use a payout model based on a fixed CPI. So when running campaigns, they charge advertisers a fixed amount of money for each user they deliver.
The CPI model shifts the monetary risks of a campaign. For the ad network, the risk increases, because it usually pays its traffic sources based on a CPM or CPC.
In contrast, the risk for advertisers decreases. As they only pay if they actually get new users, this model guarantees them a minimum quality of traffic.
Rewarded campaigns often run based on fixed CPIs too. In this case, the ad network forwards a share of the CPI to the user who installs the app. But users do not receive money. Instead, they receive an in-app item or in-app currency.