wordpress blog stats
Connect with us

Hi, what are you looking for?

How to find out the real cost of an App Install – Deepak Abbot

rp_deepak-paytm-250x295.jpg

Finding the cost of your app install is simple — price (CPI) you pay to a network? Think again — is it the actual cost of each net install? Here is a quick math on how to calculate it accurately (excel calculator available below to download):

You need to have the following 3 basic numbers available to start with:
Price you pay per install: CPI paid to network
Average uninstall rate: Available from Android App Store dashboard
K Factor (How many organic install brought in by a paid one): Varies as per the rank bucket— check the table below.

K Factor Table:
Apps ranked between 1 to 10 = 2.5
Apps ranked between 11 to 25 = 1.5
Apps ranked between 26 to 50 = 1
Apps ranked between 51 to 100 = 0.5
Apps above 101 = 0.1
(Note: Rank in overall Free or Overall Paid section)

So now lets take an example and find App’s effective CPI:
Example 1: App ranked between 11 to 25
(A) Install Recd: 1
(B) CPI Charged by Network: $2.5
(C) Total Paid to Network: A x B = $2.5
(D) Uninstall Rate: 40%
(E) Net Installs: A/(1-D) = 0.6
(F) K Factor: 1.5 (Refer table above)
(G) Organic Install: E x F = 0.9
(H) Total Installs = E + G= 1.5
Effective CPI = C/H= $1.67

So in above example your effective cost of getting an install is $1.67

Advertisement. Scroll to continue reading.

Now lets see how the math changes if your app is ranked below 100:
Example 2: App ranked below 100
(A) Install Recd: 1
(B) CPI Charged by Network: $2.5
(C) Total Paid to Network: A x B = $2.5
(D) Uninstall Rate: 40%
(E) Net Installs: A/(1-D) = 0.6
(F) K Factor: 0.1 (Refer table above)
(G) Organic Install: E x F = 0.06
(H) Total Installs = E + G = 0.66
Effective CPI = C/H = $3.79

To make things easy, I am attaching a CPI calculator made in excel which helps you input your app’s details and find out the true CPI.
Download here — http://bit.ly/CPIcalc

Deepak Abbot currently heads mobile strategy for Times Internet and has previously worked with Paytm as their marketing head. His core competency lies in product management, mobile growth & data analytics. He is on Twitter at @deepakabbot. This post originally appeared on Medium. Crossposted with permission.

You May Also Like

News

Mobile number porting requests increased by 20% to 8.2 million requests in December 2020, compared to 6.8 million porting requests reported in November 2020....

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ