True CPI (True Cost Per Install) is a unique metric developed by V.O.X. that represents the actual cost associated with acquiring app installs, encompassing both paid advertisements and organically acquired installs. This comprehensive metric provides a holistic view of the total cost per install by factoring in all avenues of user acquisition, including advertising expenses and organic growth. True CPI is essential for gauging the overall cost-effectiveness of app marketing efforts, offering a more accurate assessment of the investment required to attract and convert new users. By analyzing True CPI, app developers and marketers can optimize their strategies to maximize return on investment and ensure sustainable growth in user acquisition.
To calculate True CPI (True Cost Per Install), follow these steps:
1. Calculate the Number of Installs from Paid Ads:
Count the number of users who clicked on the ad and subsequently installed the app. This provides the direct installs attributed to paid advertising.
2. Calculate the Organic Downloads Influenced by Paid Ads:
Estimate the number of users who indirectly installed the app due to exposure from paid ads. This includes users who saw the ad but installed the app later without clicking directly.
3. Calculate the Total Advertising Cost:
Determine the total cost incurred for all advertising campaigns, including all expenses related to ad placements.
4. Calculate True CPI:
Divide the total advertising cost by the sum of the installs from paid ads and the organic downloads influenced by those ads.
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1. Measurement of Overall Cost Efficiency:
True CPI serves as a more accurate indicator of marketing cost efficiency. By accounting for both paid ads and organic downloads indirectly influenced by those ads, it provides a comprehensive understanding of the total return on investment (ROI).
2. Recognition of the Value of Organic Growth:
Organic downloads, which come at no additional cost, contribute to reducing overall marketing expenses. True CPI allows you to evaluate the value of organic growth that is indirectly driven by paid advertising efforts.
3. Optimization of Advertising Strategy:
Understanding True CPI helps identify the most effective advertising channels and strategies. By analyzing this metric, marketers can optimize the allocation of their marketing budget, focusing on the channels that yield the best results.
Conclusion:
Calculating True CPI offers valuable insights into the effectiveness of app marketing efforts. By measuring both direct and indirect user acquisition costs, app developers and marketers can make informed decisions to enhance their advertising strategies and maximize their investment in user acquisition.
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