How is CPI calculated?

CPI, or Cost Per Install, is a metric used to determine the cost-effectiveness of mobile app marketing campaigns, particularly in measuring how much an advertiser pays for each installation of their app. The calculation involves dividing the total cost of the advertising campaign by the number of installs generated as a result of that campaign.

In this context, using the total cost of the campaign captures the entire investment made, while dividing by the number of installs provides a clear view of the direct return on that investment in terms of new users. This metric is particularly important for advertisers seeking to optimize their marketing spend and ensure they are acquiring users at a reasonable rate.

Other options represent different metrics: the cost per click (CPC) focuses on the actions taken (clicks) rather than installations, cost per impression (CPM) measures the cost per thousand impressions regardless of user action, and cost per action (CPA) relates to a specific post-click action, which may not specifically involve app installations. Thus, focusing solely on installs accurately reflects the purpose of the CPI metric in app marketing.