CPC (Cost Per Click) and CPI (Cost Per Install) are two widely used metrics in the field of web marketing and advertising. While each model has advantages, it’s critical to recognize how they differ and choose the one that best serves your advertising objectives.
We will examine the differences between CPC and CPI in this blog post, as well as their distinct applications, and which model may be the best fit for your unique requirements. Also, we recommend our readers to use a dedicated mobile marketing platform in order to make their mobile marketing campaign successful.
What Is CPC?
CPC, short for Cost Per Click, is a frequently utilized price structure employed in online marketing initiatives. It runs around the tenet that advertisers only get paid when users click on their adverts. Pay-per-click (PPC) campaigns and search engine advertising networks like Google AdWords are two places where this strategy is particularly common. CPC’s main goal is to increase traffic to a website or landing page.
Regardless of whether a click results in a conversion or a sale, advertisers are only charged for the number of clicks on their adverts. Through the use of CPC, advertisers can assess the success of their campaigns by examining the click-through rates (CTRs) and the amount of traffic that was produced. For organizations looking to boost brand recognition, generate leads, or gauge customer interest in their goods, this strategy might be helpful.
What is CPI?
CPI, or Cost Per Install, is a metric predominantly used in mobile app marketing campaigns.The cost that marketers incur for each successful installation of their mobile application is represented by CPI, as the name would imply. The rapidly expanding mobile app market, where app developers work to increase their user bases, makes this paradigm very pertinent. CPI places more of an emphasis on app installations than CPC does on clicks.
Only after customers successfully install their mobile apps can advertisers receive payment. This indicator is crucial for app developers because it allows them to monitor the expense of bringing on new customers and assess the effectiveness of their app marketing strategies. Developers may evaluate the effectiveness of their user acquisition techniques, improve their campaigns, and comprehend the return on investment (ROI) for their efforts to promote their apps by calculating the CPI.
Distinguishing Factors :
Let’s examine some salient identifying characteristics in order to better comprehend the differences between CPC and CPI:
1. Goal: While CPI concentrates on attracting new users and boosting app installations, CPC primarily strives to increase traffic and generate leads. Which model is best depends on what your advertising campaign’s goals are.
2. Industry: CPC is extensively used across a range of online advertising channels, such as display networks and search engine ads, making it adaptable for companies in a variety of sectors. On the other hand, CPI is primarily utilized in the mobile app sector, where the objective is to entice people to download apps.
3. Pricing: Regardless of whether a click results in a conversion or other action, CPC charges advertisers for each click. CPI, on the other hand, only bills marketers when customers successfully download their mobile apps. For organizations looking for certain results, this differentiation is crucial.
4. Performance Evaluation: Click-through rates (CTRs) and the amount of traffic produced are used to gauge how effective CPC is. CPI, on the other hand, focuses on app installations and gives app developers a way to evaluate the effectiveness of their user acquisition strategies and the cost per installation.
Choosing the Right Model:
Determining which model is better, CPC or CPI, depends on the specific advertising objectives and what analytical tool or mobile marketing platform you are using and the industry in question. Let’s consider a few scenarios:
Let’s consider 2 Scenarios To Understand The Comparison Better:
Scene 1: Driving website traffic and lead generation
CPC can be a better option if your main objective is to improve website traffic, brand awareness, or lead generation. CPC enables you to assess the success of your advertisements in terms of arousing interest and drawing visitors to your website because you only pay for clicks.
Scenario 2: User Acquisition and Mobile App Marketing CPI is the best approach if you work in the mobile app market and want to increase app installations, attract more users, and expand your user base. CPI enables you to evaluate the cost per install, gauge the success of your app marketing initiatives, and optimize your user acquisition tactics because you only pay for successful installations.
In conclusion, CPC and CPI are two unique pricing methods utilized in internet advertising, each with a different purpose. CPI is the best option for mobile app marketing and user acquisition, whereas CPC is frequently utilized to increase website traffic and generate leads. Which model is more effective will depend on your unique advertising objectives and the sector you work in. You may enhance the efficiency of your advertising campaigns and make an informed decision if you are aware of these distinctions.