CPM, CPI, CPC What’s the difference? Mobile ad spend models explained
What are CPI, CPC and CPM? • CPI: Cost-per-install • CPC: Cost-per-click • CPM: Cost-per-mille (“mille” = 1000 impressions)
Pros of paying for installs Low cost and low risk: Don’t spend money on users that don’t convert to instal s.
Cons of paying for installs Limited control over traffic: Non-transparent networks wil funnel low-quality traffic to CPI campaigns. Limited user behavior tracking: Hard to analyze why a user clicked but didn’t convert further down the funnel. Ad optimization is low priority: Good creatives aren’t worth the effort for CPI.
Pros of paying for clicks More insightful than CPI: Easier to analyze why users do or do not click your ad. Can be cheaper than CPI: Once you understand user behavior, optimize for max conversions.
Cons of paying for clicks Optimization required: CPC is more expensive than CPI if you don’t have the tools to maximize conversions.
Pros of paying for impressions Goes well with rich media and video: Animations, video, and dynamic interactive ads encourage a higher level of visual engagement. Control over ads: Good for when brand awareness is more important than performance. Customized data: Use the interactivity of rich media ads to analyze user sentiment.
Cons of paying for impressions Beware low quality impressions: Non-transparent networks may stick you with the worst traffic. Get total transparency now"