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True CPI


"Return On Advertising Spend" (ROAS) is a metric that indicates the ratio of revenue to advertising expenditure. Specifically, it is calculated by dividing the revenue generated by advertising by the cost spent on advertising. This indicator is used to evaluate the effectiveness of advertising campaigns and optimize the allocation of marketing budgets.

Method of Calculating True CPITo calculate True CPI, follow these steps:Calculate the number of installs from paid ads:Here, count the number of users who actually clicked on the ad and installed the app.Calculate the organic downloads that would have been obtained through Paid Ads:This is the number of users who indirectly installed the app under the influence of paid ads. This includes users who saw the ad but installed it later without clicking directly.Calculate the total advertising cost:Calculate the total cost incurred for all advertising campaigns.Calculate True CPI:Divide the total advertising cost by the sum of the number of installs from paid ads and the number of organic downloads that would have been obtained through Paid Ads. This will calculate the 'true cost' per install.True CPI=Total Ad SpendPaid Installs+Indirect Organic InstallsTrue CPI= Paid Installs+Indirect Organic InstallsTotal Ad SpendSignificance of True CPIMeasurement of overall cost efficiency:True CPI is a more accurate indicator for measuring the cost efficiency of marketing. By taking into account not only paid ads but also organic downloads indirectly obtained through ads, you can understand the total return on investment.Recognition of the value of organic growth:Organic downloads are free and contribute to reducing the overall marketing cost. By using True CPI, you can evaluate the value of organic growth indirectly brought about by paid ads.Optimization of advertising strategy:By understanding True CPI, you can determine which advertising channels and strategies are most effective, and optimize the allocation of marketing budget.

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