CPI
What is CPI in Growth Hacking?
CPI (Cost Per Install) is a metric used in growth hacking and mobile app marketing to measure the average cost of acquiring a new user who installs an app. It's calculated by dividing the total cost of a marketing campaign by the number of app installs generated.
Synonyms: Cost Per Install, User Acquisition Cost, App Install Cost, Mobile App Marketing Metric
Why CPI is Important in Growth Hacking
CPI is a crucial metric for growth hackers and app marketers because it directly impacts the profitability and scalability of user acquisition campaigns. By understanding and optimizing CPI, growth hackers can:
- Allocate marketing budgets more effectively
- Compare the efficiency of different marketing channels
- Determine the viability of user acquisition strategies
How to Calculate and Use CPI
To calculate CPI, use this simple formula:
CPI = Total Campaign Cost / Number of Installs
For example, if you spent $1000 on a campaign that resulted in 500 app installs, your CPI would be $2.
Growth hackers use CPI to:
- Benchmark performance across different ad networks
- Set bidding strategies for app install campaigns
- Estimate the potential return on investment (ROI) of marketing efforts
Strategies to Reduce CPI
Lowering your CPI can significantly improve your app's growth and profitability. Here are some effective strategies:
- Optimize ad creatives and targeting
- A/B test different ad formats and placements
- Focus on high-performing channels and audiences
- Improve app store optimization (ASO) to increase organic installs
- Implement referral programs to encourage user-generated growth
Frequently Asked Questions
- What's a good CPI for mobile apps?: A good CPI varies by industry and app category, but generally ranges from $1 to $3 for non-gaming apps and $1 to $5 for gaming apps.
- How does CPI relate to LTV?: CPI should be lower than the Lifetime Value (LTV) of a user to ensure profitability. Ideally, aim for a CPI that's 1/3 or less of your LTV.
- Can CPI be used for web-based products?: While CPI is primarily used for mobile apps, a similar metric called Cost Per Acquisition (CPA) is used for web-based products and services.
- How often should I measure CPI?: Monitor CPI regularly, ideally daily or weekly, to quickly identify and respond to changes in campaign performance.
