Must-know eCPI benchmarks for app marketers

Effective cost per install (eCPI) is a vital metric that acts as a compass for your app’s marketing success. In today’s fluctuating and competitive global economy, having a firm grasp on eCPI is not just beneficial—it’s essential. For developers, advertisers, and marketers, eCPI offers a clear picture of the cost to acquire each new user, measures return on investment (ROI) of marketing efforts and guides budget allocation and campaign strategies. By understanding eCPI, you can ensure every marketing dollar is well spent, driving more value and efficiency in your campaigns.

**In this fourth entry of our metrics series, we pivot from **** retention rates**, sessions and lifetime value (LTV) to dive into eCPI. We'll delve into its importance, analyze industry benchmarks across different platforms, regions, and verticals, and share proven, actionable strategies to lower your eCPI and enhance your marketing campaigns.

eCPI represents the true cost of acquiring a new user after a campaign has run. Unlike the traditional cost per install (CPI), which is a fixed rate an advertiser pays to an ad network before a campaign once an app is installed, eCPI reflects the actual expenses incurred, including organic variances and the viral effects of a marketing campaign.

eCPI factors in the "K-factor," a measure of an app's virality. The K-factor assesses how many additional users each existing user brings to an app, highlighting the organic growth potential that CPI might overlook. This inclusion of viral components makes eCPI more complex to calculate, but provides a more accurate representation of the cost per install.

Understanding eCPI allows advertisers to allocate their budgets more efficiently, optimize campaigns for a lower cost per install, and compare the performance of various user acquisition (UA) channels. Compared to cost models like cost per mille (CPM), where charges are based on ad impressions regardless of user action, eCPI ensures that advertisers pay only when an app install occurs. This is particularly beneficial as it indicates a higher level of user intent and reduces the risk of spending on uninterested audiences.

However, while eCPI is a more reliable measure of acquisition cost, it does not guarantee that users will engage with the app beyond the initial download. High install rates do not necessarily translate into high engagement or monetization. Therefore, eCPI should be considered alongside other key metrics like LTV and return on ad spend (ROAS). LTV measures the total revenue generated from a user over time, providing insights into the long-term value of acquiring that user. ROAS calculates the revenue earned from advertising relative to the amount spent, offering a direct measure of campaign profitability. By integrating these metrics, marketers can better assess the overall impact of their campaigns and make more informed decisions.

Additionally, advertisers and marketers must regularly review and adjust their strategies to maintain cost-efficiency based on market conditions, competition levels, and seasonal demands, as eCPI can fluctuate with these variables.

To understand eCPI, we first need to look at the traditional CPI, which is calculated by dividing the total marketing spend by the number of installs generated from a campaign. Here’s the formula to calculate CPI:

Before determining what a good eCPI is, it’s critical to understand the nuances behind it. Here are some key elements affecting eCPI:

• Geographic location: Users from different regions bring varying levels of value based on socio-economic status and spending habits. Typically, more affluent regions have higher eCPI due to greater spending potential.
• Advertising channels: Major platforms like Meta and X may have higher costs due to their extensive reach. However, niche channels can provide more targeted and cost-effective UA. The key is to balance broad reach with precise targeting to optimize eCPI.
• App vertical and genre: The app's category and genre greatly affect eCPI. Competitive categories, especially within gaming, tend to have higher eCPI due to increased user engagement and monetization potential.
• Ad unit costs: The type and placement of ad units also influence eCPI. Premium placements generally lead to higher eCPI but can drive more installs and potentially higher-quality users. Balancing ad unit costs with expected user engagement is crucial.
• Platform differences: eCPI varies between iOS and Android platforms, with iOS often being higher due to a user base with a greater propensity for in-app spending (especially outside of gaming). This requires different budgeting and targeting strategies for each platform.
• Market dynamics: Market conditions, including competition and overall demand for mobile apps, also affect eCPI. Highly competitive markets typically increase the cost of UA, making it essential to stay updated on market trends and adjust strategies accordingly.

A “good” eCPI balances cost with the quality and long-term value of users. It’s not just about minimizing costs but ensuring that acquired users are valuable in terms of engagement and monetization. Integrating eCPI with LTV and ROAS ensures a comprehensive view of campaign effectiveness, enabling marketers to optimize their strategies for sustainable growth.

We've analyzed the global eCPI across all platforms for 2023 and the first half of 2024. Use this data to assess how your app's eCPI aligns with global industry benchmarks.

Analyzing eCPI by region reveals significant differences in UA costs across global markets. North America consistently leads with the highest eCPI, at $2.2 in 2023, slightly decreasing to $2.12 in H1 2024. This high eCPI reflects the competitive nature of the market and the generally higher spending capacity of users, making it a region where marketers must invest more to acquire valuable users.

We analyzed eCPI trends across various app verticals for 2023 and the first half of 2024, revealing notable differences in UA costs. Entertainment and utilities apps maintained low eCPIs, with entertainment apps decreasing slightly from $0.46 to $0.44, and utilities dropping from $0.21 to $0.11. The low costs highlight the consistent demand and broad appeal of these app categories.

Finance and shopping apps also saw reduced eCPIs, with finance apps decreasing from $1.21 to $1.09 and shopping apps from $0.99 to $0.82. These categories can further improve acquisition costs by enhancing personalization strategies to boost user engagement and retention.

North America recorded the highest eCPIs in H1 2024, with games at $2.14 and social apps at $2.15. Health & fitness apps had an eCPI of $1.19, while lifestyle apps were at $1.43. Utilities apps had a lower eCPI of $0.64.

In APAC, the eCPI for mobile gaming was $0.64. For health and fitness apps had an eCPI of $0.45, while lifestyle apps were slightly lower at $0.44. Social apps showed a moderate eCPI of $0.51, whereas travel apps had a higher cost at $0.72. Utilities apps had the lowest eCPI at just $0.04.

Optimize ad networks and creatives

Selecting the right ad networks and optimizing ad creatives are essential steps. Use A/B testing to find the most effective ad copies, images, and videos. Engaging and relevant creatives can greatly increase user interest and installs.

Target specific audiences

Focus on targeting audiences likely to be interested in your app. Use demographic, geographic, and behavioral data to refine your target audience. Precision targeting reduces wasted ad spend on uninterested users and improves campaign efficiency. Retargeting users who have shown interest but haven't installed your app yet is also a cost-effective strategy to boost installs and reduce eCPI.

With Adjust's Automate, you can create custom audiences, automate segmentation, and update audiences in real-time, improving user engagement and retargeting success.

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