CPI (Cost Per Install) is not only a number that represents the budget but also a factor that determines the effectiveness of a marketing campaign. So how can businesses reduce the CPI index costs while maximizing the benefits of each installation? Let’s explore 5 CPI optimization strategies with Ecomobi in the following article!
What is CPI index?
CPI Index (Click Per Install) is one of the Affiliate Marketing payment methods, which means that advertisers only pay when users download and install their app after clicking on the ad.
Benefits of CPI Index in mobile advertising campaigns:
- Cost optimization: Instead of paying for each click, Advertisers only pay for users who install the app.
- Precise targeting: Ads can be targeted to the right users who are likely to install the app, improving campaign effectiveness.
- Easy management and tracking: Since app installs are the ultimate goal, it is easy to track and evaluate campaign effectiveness.
CPI formula
CPI Index can be calculated using the formula: CPI = Total advertising cost / Number of installations.
CPI Index bidding is not cheap (due to the final action requirement of installing the application) and also because the competition for mobile applications in the market is becoming increasingly fierce. Not only that, the number of users who download the app may not use it, which is also one of the disadvantages.
Read more: What is CPM? How to calculate and optimize for advertising campaigns
Factors affecting CPI index in marketing campaign
Cost per install (CPI) in marketing campaigns can be influenced by many important factors. Here are some of the key ones:
- Geography: CPIs vary significantly depending on the region the campaign is targeting. For example, North America typically has the highest CPIs, especially for iOS apps, while regions like Latin America or Asia have much lower CPIs.
- Device Type: The platform on which users install the app also affects costs. iOS users typically have higher CPIs than Android users, due to iOS users’ greater propensity to spend on apps.
- App Genre: Apps of different genres will have different CPIs. Mobile games, especially games, will have much higher CPIs than utility or educational apps.
- Ad Placement and Ad Network: Where and how ads are placed also affects costs. Ads on premium platforms like social media (Facebook, Instagram) can have higher CPIs than other ad networks. Ad formats (video, banner, interstitial) also play a role.
- Audience targeting and user quality: Targeting the right audience can help reduce CPI by reaching users who are more likely to install the app. However, if the targeting is too broad or the segmentation is ineffective, the ad spend can be wasted.
- Fraudulent activity: fake downloads from “click farms” or bots, can also skew the effective CPI.
5 ways to optimize CPI costs for effective marketing campaigns
To reduce CPI (Click Per Install) and optimize app advertising campaigns. The formula for calculating CPI is very simple, but creating the highest ROI (return on investment) is not an easy problem. Below are 5 detailed strategies that marketers can use:
Target the right audience
You need to analyze user data and understand clearly about age, interests, behavior, and geographic location. The more specific and precise the target area is, the more you minimize advertising to audiences that have no potential/ability to install the application.
In addition, this process will also help businesses identify suitable advertising channels as well as feasible advertising content. For example, educational applications such as English learning apps, grammar-checking apps, etc. will appear on Youtube videos with learning topics, vlogs, etc. with young viewers.
Optimize Landing Page
A landing page is where a user lands after clicking on an ad (it could be the App Store, Google Play, or the app publisher’s website). If this page is not optimized, users may leave without installing the app. Optimizing your landing page improves conversion rates and reduces CPI costs.
How to optimize your landing page:
- Image and description quality: Images and videos describing the app should be clear and interesting to stimulate users’ curiosity, and at the same time, clearly demonstrate the outstanding features of the app.
- Reviews and comments: Positive reviews from previous users can create trust. Apps with many reviews and high scores will attract more users.
- Clear Call-to-Action (CTA): Make sure the app download button (Download/Install) is placed in a visible position and is large enough for users to click immediately when deciding to install.
Choose the right platform
Another strategy to reduce the CPI Index is to run ads on platforms with the right target audience. Choosing the right ad platform will help you reach people who are more likely to install your app, thereby reducing your cost per install.
Popular platforms for running app ads:
- Facebook and Instagram: With detailed targeting tools and large audiences, advertising on Facebook and Instagram is often highly effective in reducing CPI.
- Google Ads: Running Google’s Universal App Campaigns (UAC) automatically optimizes ads based on user data, helping to reduce CPI costs.
- TikTok: This platform is especially effective for apps targeting younger users. TikTok helps you create creative and engaging advertising campaigns that attract users at a reasonable cost.
Use promotional videos
This is the age of video (TikTok, YouTube Shorts, and Instagram Reels are the best examples). Video ads are more engaging, and can convey more information than static images or text, thereby explaining the benefits and features of the application better. You can tell a long story or a short story and optimize the video to suit each advertising platform.
How to use video ads effectively:
- Short and engaging videos: Video ads should be short (under 30 seconds), focus on the app’s key features, and clearly explain the benefits users will receive.
- Vivid story: A video that tells a story or puts users in a real-life situation will help increase emotional connection, making it easier for viewers to visualize how the app will help them solve their problems.
- Run videos on video platforms: Platforms like YouTube, Instagram, and TikTok are ideal places to advertise videos, as they can easily reach potential users and drive installation actions.
Continuous testing and optimization
To optimize the CPI Index, you need to continuously monitor and evaluate the effectiveness of your campaign. A/B testing elements such as message, advertising format, target audience, and advertising channel will help you understand which elements bring the best results.
For application and software developers, CPI will be one of the most reasonable affiliate marketing. Understanding how to calculate CPI and the factors that affect this cost will help businesses and marketers optimize costs effectively, bringing maximum revenue from CPI advertising activities.
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