No matter if it is big or small every business needs to earn profit in order to expand and survive in the long run. There are several business models in the mobile app industry. For every business, the advertising models play a crucial part. While entering the world of accomplishments, it is very common to encounter different marketing models with unfamiliar abbreviations. Pricing models is one of the most crucial things to know before starting any campaign related to your company. Advertising campaigns are the tower of strength for any venture. There are various mobile advertising platforms and it is important to rectify which model suits you or your venture without a glitch.
Cost Per Install or CPI is a vital metric for mobile applications. CPI formula is specially designed for mobile applications and can’t be applied to other areas of your venture. As per CPI metric, a venture will pay to the advertisers only when the app will be installed by the customers. It is highly cost-effective as you are charged only for the advert shown when a mobile user downloads or installs your software. CPI mainly deals with app downloads and installs. Though CPI is a kind of mobile advertising to ensure more organic downloads, it proves helpful in attracting highly committed users as it targets the right target audience. With such kind of audience, it becomes possible to build a long-term relationship goal and eventually augmentation in profits. CPI advertising metric helps in achieving several goals, like increasing the organic number of active users who fulfill desired actions, boosts the number of installs, growth in app ranking in the app stores and above all generating revenue is of utmost importance.
Cost Per Action or CPA is a type mobile advertising pricing model in which the advertisers pay for every specified action. This advertising model pays to a publisher only when the advertisement completes its target such as purchasing the product, subscribing it, filling the forms, participating in the quizzes etc. It is sometimes referred to as Cost per Acquisition also. Actually, it is a buying model. This metric can also be called as the safest method amongst all business models to bring more sales with the help of paid media in the market today. A sale or conversion can be a purchase, a simple sign up or can only be directing the user to a specific section or a page of a website. Whenever the target is achieved, the advertiser gets the amount which gets decided beforehand. This metric can be called to be underrated as it is being used by most of the advertisers still it has not gained much of the popularity. The best part of this method is that it is risk-free. If the target is achieved then the advertiser has to pay otherwise nothing to spend.
Cost Per Mille or CPM means when an ad completes the target of being shown 1000 time on a website, the publisher will get paid for it. This method makes advertisement revenue more predictable and a publisher will get a fair knowledge of the number of visiting audience in a month. This method doesn’t require any additional traditional system. The advertiser will fix a flat rate for one thousand advertisement displays to your target audience. There are various other management systems that help in tracking the record of one thousand advertisement reach. Sometimes, this becomes more specific which is a little challenging. Like there are times when the advertiser wants to direct all the audience to a specified column or a web page or a section etc. if seen through the lens of the publisher, it becomes the best choice for brand-oriented campaigns. It is super easy to implement and maintain. The viewership is quantifiable and verifiable through this metric. It provides you with a large exposure for the target audience.