Google AdWords, how does “target CPI” affect performance? (Android app)

Question

I\'m advertising an app using AdWords. It\'s been around a month now and everything is fine, there\'s just one thing I don\'t understand and it\'s the \"Target CPI\" (cost-per-i

Answer 1

Setting a lower CPI means you are willing to pay less per install. When using a CPI bid you are allowing Google to automatically adjust your actual cost per click bid in a way they feel will drive you the most installs at your acceptable cost per install.

Google has a tool called bid simulators which allow you to estimate the impact of changing your bids. There is a section for Target CPA bid simulators that is the equivalent of a CPI bidding strategy for app install campaigns. If you have enough data in your account you may be able to use this tool to estimate the impact of changing your bids though in your case since your CPI bids are extremely low I don't believe the estimates will be accurate.

Instead of monitoring clicks and CPI the key performance indicator you should monitor is your actual cost per install vs your revenue per install (depending on how you monetize your rev/install number may vary) For example you have an install conversion rate of 50% but unless you are selling a paid app (rather than in-app purchase or ads) then your rev/install will vary. In that case using CPI bidding may not yield the best ROI because Google doesn't care about the quality(revenue) of the install but rather only the quantity of installs at your target CPI.