Cost per install explained
CPI is the most quoted number in app marketing and one of the least reliable, because the denominator counts things that may never have happened.
9 August 2026 ยท PAD team
The definition, and the version that is true
Nominally, cost per install is spend divided by installs. In practice the figure most teams look at is spend divided by installs the platform attributes to itself, which is a different number and generally a friendlier one.
reported CPI = spend / installs the platform claims
effective CPI = spend / installs your store console actually shows
The gap between them comes from attribution windows, from cross-device claims, and from taps that never reached the store at all. Only the last of those is something you can fix yourself.
What CPI looks like now
Reported industry averages put iOS around six dollars and Android around two, with enormous variance by category. Casual games sit at the low end, finance and subscription apps several times higher, and tier one markets run three to five times emerging ones. Published sets like Business of Apps are fine for orientation and misleading if used as a target.
| Category | Rough iOS range | Why |
|---|---|---|
| Casual games | low | broad audience, high tolerance |
| Utilities | low to mid | clear promise, quick decision |
| Subscription health and fitness | mid to high | narrow audience, high intent required |
| Finance and fintech | high | small qualified pool, high LTV justifies it |
Your own number from last month is worth more than any of these. Benchmarks tell you whether you are in a plausible range, not whether you are doing well.
The silent inflation
If a share of your taps never reaches the store, you still paid for them. That does not raise your reported CPI, because the platform did not count those as installs either. It raises your effective cost of a working install, quietly, by the size of the leak.
Some arithmetic. Suppose you spend a thousand dollars and the platform reports two hundred installs at five dollars each. If 15% of taps never arrived, you paid a thousand dollars for a path that could only ever deliver 85% of what you bought. The five dollar figure is real. It is just not the whole price.
How to compute the honest version
- Take spend for a clean period, one channel, one country.
- Take installs from the store console rather than the ad platform, for the same period and geography.
- Divide. That is your effective CPI.
- Compare against the reported figure. A persistent gap is a measurement problem worth an afternoon.
What to do with the number once you have it
CPI on its own is not actionable, because a cheap install that churns in a day costs more than an expensive one that stays. Pair it with day seven retention and you get cost per retained user, which is the figure worth optimising and the one almost nobody reports.
The denominator is easier to fix than the numerator.