How to Reduce Cost Per Install in App Marketing

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Mobile advertising is a critical process of today’s digital marketing industry. It’s highly used by publishers and businesses to reach their target audiences. And one of its most important metrics is Cost Per Install (CPI).

If you’re looking to optimize your app marketing strategy and decrease CPI, you’ve come to the right place. In this article, we’ll dive into the world of CPI, explore how it’s calculated, and discuss some tips and tricks to help you lower your costs and boost your Return on Ad Spend (ROAS).

What is Cost Per Install and How to Calculate?

First things first, let’s get familiar with the concept of Cost Per Install. CPI refers to the amount of money you spend on acquiring a single installation of your mobile app. It’s a crucial metric that directly impacts your marketing budget and overall campaign performance.

Calculating it is relatively simple. You just need to divide the total amount spent on acquiring installs by the number of installs generated during a specific period. For example, if you spent $1,000 and gained 500 installs, your CPI would be $2 ($1,000 / 500).

The image shows a man installing an app

Tips to Decrease Cost Per Install

Now that you have a grasp of what CPI is and how it’s calculated, let’s dive into some practical tips to help you decrease your Cost Per Install and maximize your app marketing efforts.

Why is CPI  Important?

Before we delve into the tips, let’s take a moment to understand why CPI matters. As an app marketer, your primary goal is to acquire users at the lowest cost possible while ensuring their quality. 

CPI directly affects your Return on Ad Spend (ROAS), which determines the effectiveness of your marketing campaigns. It may not guarantee interactions on your app, but definitely reflects if users find it interesting.

What are Cost Per Install Rates for 2023?

It’s essential to have an understanding of the current market rates for CPI in 2023. These can vary depending on factors such as the app category, target audience, geographic location, and the competitiveness of your industry.

It’s important you research and analyze industry benchmarks to gain insights into the expected CPI rates for your app. Overall, an average global CPI can be calculated considering every region, platform and device. Here are some of them:

  • iOS app – $3.6
  • Android app (Google Play market)- $1.22
  • iOS Games – $4.3
  • Android Games – $1.15
  • Facebook Ads – $1.04

Why does Cost Per Install (CPI) matter for your ROAS?

CPI plays a significant role in determining your ROAS. By reducing your CPI, you can acquire more users within your allocated budget and improve your  Return on Ad Spend. 

A lower CPI means you’re getting more bang for your buck, allowing you to reinvest the saved funds into other marketing activities or even app development. So, keep track of your analytics and experiment with different strategies to lower your cost per install!

The image shows CPI decreasing on a laptop

How can businesses lower their Cost Per Install (CPI)?

Now that you know why decreasing your CPI is so important, we can go through how to do it. Here are some tried-and-tested strategies that can help you optimize your app marketing efforts and reduce your cost per install:

  1. Define and target your ideal audience: To ensure your marketing budget is well-spent, identify your target audience’s characteristics, preferences, and behaviors. By doing so, you increase the likelihood of acquiring quality installs at a lower cost.
  2. Optimize your app store presence: A well-optimized app store listing can significantly impact your CPI. Focus on creating compelling app descriptions, using relevant keywords, and including attractive visuals and screenshots. 

A visually appealing and informative listing can improve conversion rates, leading to lower CPI.

  1. Implement app retargeting campaigns: Retargeting campaigns allow you to reach out to users who have shown interest in your app but haven’t installed it yet. By reminding them of the value your app offers, you increase the chances of conversion and lower your CPI.
  2. Leverage social media advertising: Social media sites offer powerful targeting options that can help you reach your ideal audience. Take advantage of platforms like Facebook, Instagram, or Twitter to run cost-effective ad campaigns and acquire installs at a lower CPI.
  3. A/B test your creatives and messaging: Experimentation is key in app marketing. Conduct A/B tests to compare different creatives, ad copies, and messaging to identify the most effective combinations.

By optimizing your marketing assets, you can improve user engagement, increase conversions, and ultimately reduce your CPI.

  1. Collaborate with influencers: Influencer marketing has become a popular strategy in the app industry. Identify creators who align with your app’s target audience and collaborate with them to promote it. Their authentic recommendations can generate organic installs and lower your CPI.
  2. Optimize your ad targeting: Take advantage of advanced targeting options available in ad platforms. Narrow down your audience based on demographics, interests, and behaviors to ensure your ads reach the most relevant users.

By refining your targeting, you can minimize wasted ad spend and achieve a lower CPI.

  1. Monitor and optimize your campaigns regularly: Keep a close eye on your app marketing campaigns and analyze their performance regularly. Identify trends, spot areas of improvement, and make data-driven decisions to optimize your campaigns further. 


Reducing the Cost Per Install in app marketing requires a combination of strategic planning, precise targeting, creative optimization, and continuous monitoring. By implementing the tips mentioned above and staying updated with industry trends, you can improve your marketing efforts.

Remember, lowering your CPI not only helps you acquire more users within your budget but also positively impacts your Return on Ad Spend (ROAS). By maximizing the value of every dollar spent, you can allocate resources to other growth initiatives and drive long-term success for your app.

Keep experimenting, learning from your campaigns, and adapting your strategies as needed. App marketing is a dynamic field, and what works today may not work tomorrow. Stay agile, stay innovative, and strive for continuous improvement to achieve your goals!

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