Facebook and Instagram could be a goldmine for mobile app advertising. The volume of traffic is immense. It is also more affordable to install a mobile application than similar traffic channels.
CPI is the cost for each individual app download. This number can be used to calculate the effectiveness and efficiency of your install campaign. This number is calculated using a simple formula: Total ad spending divided by number of app downloads.
Advertisers often wonder how much to expect to pay per install of a mobile app on Facebook or Instagram. The simple answer is that anywhere between $0.25 to $100 CPI.
Cost Per Mobile App Install
But why is there such an extreme variance in the cost of installing a mobile app? It is more complicated than that. CPI is a key factor that advertisers must consider. Optimizing your campaigns for each of the six factors can drastically reduce the CPT.
1. Verticals of mobile app installation cost
CPI is usually determined by the advertiser vertical. CPI will be lower if there is a greater appeal. Click-through rates and conversion rate increase so Facebook ads costs fall. E-commerce verticals in the U.S. have a CPI that ranges between $0.50 and $2.00. CPI ranges between $2.00 and $15.00 for casual casino apps. MMORPGs often have a CPI higher than $20 on Facebook or Instagram.
2. Creative Optimization
CPI can vary by as much as 10x depending on whether the creative is optimized or not. We have seen advertisers see a dramatic increase in CPI after using breakout creative that has been rigorously tested. It took just days for them to go from $80 CPI down to $3.00 CPI.
3. Workflow Automation and Rule-based Management
Software is often used by Facebook advertisers to automate workflows and manage ads through rule-based management. Advertising agencies can minimize the risk associated with ads that don’t perform well by also using software to manage them around the clock. They can scale high-performing ads much more easily. AdRules(tm), which is a self-service platform that allows advertisers to automate their workflow and establish rule-based management to ads, is called AdRules.
4. Attribution Windows
Advertisers may use different windows for measuring mobile app installs. Facebook’s default attribution window includes a 1-day view and a 28-day clicking window. Advertising companies will be able to show a higher CPI when they opt not to use view attribution. Instead, an advertiser can choose to have a shorter click attribution window than 28, or use last-click attribution (where Facebook uses any type of click attribution).
Instagram and Facebook show very different CPI per country. It is also important to note that the value of users per country can vary. Here are some key points to remember when valuing CPI for each country.
- Facebook vs. the Instagram User Value By Country
- iOS vs Android User in Different Countries
- CPI for different regions or territories of large countries
6. Cost per mobile app install audience
Advertisers are more likely to notice a link between higher CPI and larger audiences. Facebook’s algorithms can also find high-quality users much more easily when there are larger audiences. This results in lower costs.
Final Thoughts – Cost Per Mobile App Download
If done well, advertisers can reach new mobile app users through Instagram and Facebook advertising. AdRules(tm), a self-service ad manager platform, optimizes social performance for mobile application advertising and lead generation.