VS
Cost per install (CPI) VS Effective cost per mille (eCPM)
Description
Cost per install (CPI)
The CPI is a predetermined price that the advertiser agrees to pay the publisher every time a user installs their app as a direct result of an ad served by the publisher.
Effective cost per mille (eCPM)
eCPM is the actual revenue earned by a publisher for every 1,000 ad impressions displayed on their app.
Target audience
Cost per install (CPI)
Advertisers and publishers
Effective cost per mille (eCPM)
Publishers
Benefits
Cost per install (CPI)
• Low risk for advertisers relative to other pricing models
• Good for creating a buzz around your app
• Good indicator of the effectiveness of your campaign
Effective cost per mille (eCPM)
• Provides a universal measurement of revenue per served impression
• Helps optimize revenue streams
• Good for evaluating the impact of app changes, and comparing against monthly/annual performance
How to calculate
Cost per install (CPI)
Total campaign spend
Number of app installs
Effective cost per mille (eCPM)
Total earnings
Total number of impressions
x 1,000
How to improve it?
Cost per install (CPI)
• Make revenue the primary KPI
• Keep a close watch on fraud
• Understand incentivized traffic behaviour
• Analyze user behaviour in the app
Effective cost per mille (eCPM)
eCPM depends on multiple factors including ad placement, geography, user engagement, ad format and channel, and seasonality.
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Cost per install (CPI)
Effective cost per mille (eCPM)
