Pay per Install (PPI)
Billing model in which advertisers pay for each completed install of an app or piece of software.
Also known as: PPI, Cost per Install, CPI
Pay per Install is a billing model from app and software marketing in which you pay for every successful installation of an application. A mere click on the advert or a download without install is not enough, only the completed install triggers payment. The model is the standard for mobile app campaigns.
How the model works
Advertisers run ads through app networks, social media or affiliate platforms and define a fixed price per install. Tracking runs via mobile measurement partners like AppsFlyer or Adjust, which attribute each install to an ad channel. Prices per install vary strongly by platform, region and app category, from a few cents up to double digit euro amounts.
Risks and quality
Pay per Install is vulnerable to fraud, since bot farms or paid click farms can generate installs at scale. Advertisers should therefore measure not only installs but also downstream events such as registration, first purchase or day three return. Only these post install metrics show whether the bought users are genuinely valuable.
Practical use
In day to day marketing, Pay per Install is usually combined with Cost per Acquisition models, so that advertisers can steer their budget along the entire conversion chain. For newsletter list building, the counterpart is Pay per Lead, since here it is not an install but a qualified subscription to an email list that is paid for.